達沃斯論壇

MARTIN WOLF IN DAVOS: WILL THE WILL TO TAKE ON DIFFICULT ISSUES DISAPPEAR?

Here are further glimpses of the Davos kaleidoscope.

First, my friend Moises Naim, editor of Foreign Policy, gave me a new acronym on the global recovery. It is LUV. The L is for the L-shaped recovery of the European economies. The U is for the U-shaped recovery of the US economy. The V is for the shape of the recovery of big emerging economies.

This looks depressingly right to me. In particular, the eurozone seems to have decided on an adjustment to its huge internal imbalances that is loaded entirely on the weak countries of the periphery. But the periphery cannot adjust if the core - namely, Germany - does not adjust too, by expanding demand. Neither the ECB nor the German government seems to understand this simple point, though one coalition partner - the FDP - does seem to do so.

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