As the latter of these options directly violates the ECB’s mandate, we can more or less exclude it as the means to “enhancing competitiveness” proposed by Draghi. So what’s left? A weaker Euro? This would also put prices under pressure as import prices, namingly commodities such as oil, would rise inversely to the Euro’s decline. To maintain price stability, the ECB would have target an offsetting decline in the domestic prices other inputs, such as labor. All of these conditions seem extremely unfavorable and cannot truly be the path to a recovery.

Am I missing something? How else can Europe become more competitive internationally while remaining domestically austere and maintaining stable prices? If nothing else, this proposal simply demonstrates the absurdity of the current mandate, as stated.

Or have I missed something?

My project of Transfinancial Economics is similiar, but is more advanced, and revolutionary than MMT.

Ofcourse, Dan makes the vital point that why should governments need to borrow…if they can actually create enough of it by themselves?

…This is a very important question. The problem here is that the global bond market for government debt is huge. It is a vested interest which would probably stop any attempt to reduce, or eradicate its power as it earn investors large profits….even though ofcourse now there is great uncertainty in this market notably in connection with the Euro Crisis.