Give Growth a Chance

July 2001

From the backseat of a Grand Marquis,
My colleagues laughed at me
For having the temerity
To suggest the possibility
That Europe might have a new economy
If only the ECB
Would set it free.

What I'd asked was so naïve,
They could hardly believe
That I could conceive
Of such a policy reprieve.

And they really looked askance
When I suggested giving growth a chance.

I understand that monetary policy
Is not the main villain of the European odyssey.

A good diagnosis
Of Euro-sclerosis
Would place more responsibility
On labor market inflexibility.

Laws against firing
Discourage hiring.

And too high a safety net
Is sure to snare and abet
Those dead set
On avoiding sweat.

When it comes to the ECB,
I understand it to be
Their single goal to protect the Euro nations
From inflations.

They said, "Rapid growth and low unemployment, Bob,
Is not the ECB's job."

But I wonder if Europe really got a bargain in
Its inflation targeting.

I ask my questions anyway
To see what the experts would say.

But they've learned their lesson well:
To avoid central banker hell,
Dodge rhetorical questions
That lead in that direction.

The lesson is, don't run an economy hot
Or you will surely not
Go to central banker heaven.