“Inflation is higher than NK models predict, and doesn’t seem to be falling. In addition, after dropping the ball in 2009, the Fed seems committed to keeping inflation expectations from falling very far below 2%. “
How in the world can anyone ignore the link between oil prices and inflation?
I have said over and over again Ireland is the weak point in the Eurozone. Ireland is the most likely to leave, because they are getting ripped of the worst.
Ireland was toasted as a massive success prior to the crisis. It’s austerity programs are harsh, and the slight up tick in growth it had for 6 months was pointed at as proof austerity works by nearly every right wing economist on the planet.
But Ireland’s economy is terrible, and will be for a generation. I just hope they don’t go back to burning peat as a fuel and heat source. I could easily see Ireland leaving over the course of a weekend. Also, Philip Pilkington is a must read in general.