There are strange things happening in the economic world these days.
When it comes to Greece’s problems apparently a default is inferior to a bailout. Of course we are not told from who’s perspective is this proposition. Somehow default leads to contagion but a bailout does not lead to moral hazard. Why wouldn’t Portugal demand the same treatment as Greece for example?
Another issue I have is that all of the sudden inflation is good. The more the better and central banks should do everything they could to inflate in order to put economies on growth paths again. There is no regard for people that do not have access to saving instruments that protect them from inflation. There is no concern anymore that inflating will lower the real burden on government debt and thus giving governments the incentive to borrow more.
Related to the previous one, government intervention is good these days. It seems that the way out of the current crisis is more government intervention disguised under the “public investment” label. How come lowering taxes has become such a bad solution? It is even opposed by private citizens and corporations. This is very strange indeed.