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Monday, March 30, 2009

ARE CALLS FOR A NEW GLOBAL CENTRAL BANK AND SUPER-REGULATOR POLITICALLY SENSIBLE?

The Answer to the Query in Today's Second Buzzy Article?

It's a hard factual --- No!  As it happens, even the eurozone Central Bank  (the European Central Bank) --- which covers 16 of the 27 EU member-states (including large countries like Germany, France, Italy, and Spain) --- has drifted into a state of discontent and controversy, aggravated by the failures of the West European giants to cold-shoulder a joint EU rescue for the financially hard-hit and economically distressed East European members of the EU . . . some 12 in all.  Remember here: 15 West European member-states constituted the EU at the start of this decade.  Twelve of those 15 set up and joined the eurzone; tiny Sweden, tiny Denmark, and giant Britain (60 million population, like France's and Italy's) stayed outside and have control over their interest rates and the exchange-rate of their national currencies.

If 27 EU member-states --- all democratic, all market-oriented, all interacting daily through a variety of regional EU institutions --- can't agree on a coordinated financial plan amid the EU's worst crisis ever, then what are the prospects for 100 or 180 countries around the world to agree on the nature and functions of a global Central Bank, lender-of-last-resort, overseer of exchange rates, and super-regulator of financial markets?  And exactly who would it be accountable to?

The Buggy Analysis in Depth

Click here for the buzzy take at Economist's View . . . though it would be helpful if you read the previous buggy article and link posted earlier today.