There must be some café in Brussels where all the most inept U.S. financial journalists meet with the troika-trolls to get their take on eurozone deflation. Regular readers know that I am a strong critic of much of what passes for financial journalism, but there are special qualities to the U.S. coverage of the topic of eurozone deflation. It is so homogenous and its logic is so internally inconsistent that it is breathtaking that so many journalists can repeat the same demented “logic” no matter how many times we explain that it is facially nonsensical.
The latest example of this genre is an AP story that has already been reproduced by elite media without even a scintilla of scrutiny. Here’s how the AP begins its tale.
American economist Hyman Minsky died in 1996, but his theories offer one of the most compelling explanations of the 2008 financial crisis. His key idea is simple enough to be a t-shirt slogan: “Stability is destabilising”.
