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Matters Financial |
23 June 2003
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Trichet's Acquittal Ends Duisenburg Years
Jean-Claude Trichet was acquitted last week of charges stemming from the spectacular collapse of French bank Credit Lyonnais -- which lost so much money that Wall Street wags has taken to calling it Debit Lyonnais. This cleared the way for him to take over as head of the European Central Bank, as part of a deal France and the rest of Europe made some years ago. Wim Duisenburg, the current chairman, will leave before his 8-year term is up, an under-appreciated man. Click here to read more.
Inflation Targets are Too Low
No one who remembers the bad old days of the 1970s and the ridiculous inflation the world suffered can think kindly of rising prices. However, as Japan can attest, and as Germany may find out, inflation is a necessary evil in modern economies. Indeed, current inflation targets in the developed world and the drive for price stability might just be a cure worse than the disease. Click here to read more.
Natural Gas Prices Threaten Recovery
The Bush administration received a great deal of aggravation during the war with Iraq due to the oil dimension. Many detractors said the war was about oil and nothing else. With its oil-business ties (both the Mr. Bush and Vice-President Cheney are oilmen by trade), there is some validity to the claim. However, one would hope that such energy wizards would understand that the soaring natural gas problem in America needs their attention. The hope seems to be in vain. Click here for our view.