Angela Merkel has just given us a compelling reason to be grateful for central bank independence.
Karl Whelan comments:
Before this turns into a party for our loyal and dedicated Austrian following, let me whole-heartedly agree with Kevin. Ms. Merkel seems not to see the contradiction in her intervention calling for a “return to independent and sensible monetary policies”. Independent from whom?
Ms. Merkel condemns the combined judgement of Bernanke, King, and Trichet, presumably because her own advisers think they know better. For me, this conjures up visions of Mrs. Thatcher and Sir Alan Walters and all the other vagaries of politically controlled British monetary policy prior to 1997.
Thankfully, M. Trichet is genuinely independent and will continue to do as he sees best.
Now back to the Austrians …