Ülo Ennuste Economics

papers and articles in wordpress



Side notes: WSJ 23.XI 2010 Duxbury Charles’ article „Estonia Eager for the Euro”

(Translation from Estonian by Google 🙂

In the first sentence –


– may give the mistaken impression that the journalist has to be a dystrophic: certainly not because the Scots is a Russian linguist, lives in Stockholm, owns Estonian friends, but it seems that way seems to be a Russian style „Tallinn” scriber WSJ editorial policy, perhaps a few other things like strange this article also.

However, it seems that Charles has more at home in policy, for example, monetary theories (he has no formal economics education), and thus the paper should be regarded primarily as a political publication –

 “A former Defense Minister, Mr. Ligi, 51 years old, became Finance Minister in June 2009 as gross domestic product Was Falling by 15% from a year earlier. ”

 – This sentence, a hint that the former Minister of Defence, Mr. Ligi joined the Financial Ministry of the decline was 15% – that it must be understood politically perhaps primarily as a hint that Estonia’s current top politicians “Bench” is just a very short, and not to understand it as Mr. Ligi himself would not have been a 15% drop in one of the main architects (for example, if the Parliament etc.

 Charles, the economic imbalances in education, however, seems to be most uncritically written interview section which does not contain any slightest macro-economical logic, populist-political though, of course –

 “As Estonian Exchange Rate has, since 2004 been locked in a tight band with a Requirement for the euro-zone entry, it hasn’t been able to devalue our currency, , Exports to boost Growth to improve. As a Result, Unemployment topped 15% of GDP and an average plunges by 14% year-on-year in 2009, to $ 19 billion. ”

– Indeed, effectively destroyed by 2004 – 2008 the export competitiveness, as well as the ability to timely accession to the euro for 2007 01.01 just irresponsible, government-inflationary fiscal taxation policy (in particular, to compensate for the irresponsible 0-tax profit generated by the hole in the budget). By the way, the 2008th Almost 11% of inflation up by the government was a huge blow hitting the national economy and finance, for example, destroyed tens and tens of billions of national deposits in the domestic market and hence the value of domestic demand – towards a huge recession.

By the way –

“Joining the euro” is the last step of a transition into the European Union as an equal, “says Ulo Ennuste, former Professor of Economics at Tallinn Technological University. “It is a good Stepping Stone Towards economic credibility, but it is being taken a step in a political thick fog,” Mr. Ennuste says. ”

– Fortunately, I have a  witness Ms. J.M. that Charles was a particularly eager to fix in his notebook all of the five most important “fogs” which I dictated to him, and, in particular in the economic field, and all of which are obscure to joining the euro, the new instrument and its effective use for the national interest – but alas the article came to light  only with the sing “political fog” – This is probably the WSJ editorial policy 🙂


November 23, 2010 - Posted by | Uncategorized

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