Out of control: Inflation

By: Casper de Vries, Erasmus University Rotterdam

How single minded monetary policy contributed to today's financial mess.

Time to stop forecasting, and to start thinking

By: Wolfgang Münchau

Forecasts that Obama will win the presidency, and that inflation is falling have in common that they mean nothing at all.

Ireland against the rest: The gloves are coming off

France and Germany plan to isolate the Irish, and put the country under pressure either to ratify, or quit; there appear huge differences among EU leaders about how to react; Saudi Arabia plans to raise oil production by 0.5m bd for fear of economic consequences of a high oil prices; the European Commission, meanwhile, plans to subject rating agencies to regulation.

EU’s future rests on Ireland's unmotivated electorate

Irish referendum turnout estimated at 40-45%, just barely above the level needed to secure a Yes Vote; Fillon indicates a soft approach in case of a No; inflation is rising sharply in Ireland; Merkel wants Hintze as successor to Verheugen in Brussels; Charles Plosser warns of a US rate increase; Greece, meanwhile, has appointed a new central bank governor.

ECB: Ooops, we did not mean it

Jurgen Stark said that ECB was not talking about a series of rate increases, contradicting market interpretation of last week’s statement by Jean-Claude Trichet; the Irish electorate decides today on the Lisbon treaty; France and Italy have agreed to push a harder European line against China and India in the WTO; Italian minister vowed to eliminate absenteeism in the Italian public sector; in Germany, meanwhile, SPD chairman Kurt Beck is facing growing challenge from within the party.

Merkel demands greater role for euro area

German chancellor says Anglo-Saxon model of financial regulation has failed; France and German plan for a joint response to an Irish No vote; inflation rises to 4.6% in Spain and 4.9% in Greece; market indicators suggest there is a good chance that the Fed might follow the ECB in raising interest rates; in Italy, meanwhile, there is growing debate about wage contracts reform.

Papademos sticks up his finger to the Fed

ECB vice president says domestic inflation target weights heavier than Fed’s concerns over dollar; but ECB remains concerned about financial stability; Zapatero criticises Trichet; Merkel and Sarkozy reach substantial agreement on CO2 emissions; Bernanke says worst is over for US economy; a poll puts Flemish support for secession ahead for the first time; the Slovaks, meanwhile, have found a new weapon against inflation: jail.