Although I am highly sceptical about the currently ongoing system of the European Monetary Union, I really respect Mr Trichet! This is the "good example of monetalism" i.e. not a nihilistic and normative monetalism: Trichetian monetalism is realistic and functional! I really think, among the advanced nations, the US Federal Researve and the European Central Bank are respectable central banks: I seriously despice the other central banks in the advanced countries such as Bank of Japan and Bank of England! All in all, Mr. Jean Claude Trichet is a great governer! He is from Nancy in the north east of France where I visited once and is famous for Art Nouveau and Jeanne d'Arc. This proves a civilised place nurtures and educates such a civilised person
Yep, as long as the EU is willing to amend the current unstable structure of the EMU, the Eurozone economy will develop further and take an initiative in the global economy.
I am totally apathetic about the ideological issue, but I strongly concern about how the newly invented common currency system and the evolution of European unionism go on in the future!
I would say, the Euro is short in the short term, but long in the long (probably and the midium) term!
Mr. Trichet had a right choice to keep a certain level of interest rate unlike BoJ and BoE having setting sizeably low! Furthermore, as the interest rate goes up (what Mr Trichet has done) , the demand of purchasing national debts goes up, and the positive inflation will be encouraged due to repressing unnecessary supply of capital and encouraging a strong capital fonded by the increased saving. As the positive inflation occurs, the nominal wage starts going up by wage burgaining because the price of goods and services eventually goes up so that people have to burgain for their income. But, as the export demand increases the employment won't decrease as the overall productivity goes up in this economic region by rise in the interest rate. Good courage!
