Financial Times (March 4)
Prices are under pressure around much of the developed world, but the European Central Bank (ECB) is focusing on keeping inflation below 2%. The Financial Times says the ECB is worried about the wrong thing: “Deflation is the dragon to slay.” The newspaper points out that wages are even falling in Germany while EU countries such as Greece face “exceedingly painful adjustment.”
Wall Street Journal (March 4)
On March 1, a dozen major Chinese newspapers ran identical editorials calling for reform. The Wall Street Journal calls this protest “remarkable,” though the editorials were removed from each newspaper’s website later the same day. The Chinese newspapers are seeking reform of the household-registration system. This system limits social benefits for those who find work outside of their hometown. The Wall Street Journal calls the household-registration system “emblematic of what happens when bureaucrats try to control market forces, in a country whose citizens are straining to embrace them to better their lives.” The Wall Street Journal is betting market forces will ultimately win.