Monday, December 12, 2005

The European Central Bank steals from the Ford playbook 

This is delightful! Mahalanobis reports that the ECB is going to create an eight-minute cartoon aimed at teens to explain why price stability is important. The leaflet for pupils is not at all bad; it does a nice job teaching about the costs of inflation and how it's calculated. (If any of my students are reading here -- this is good review for chapter 11.)

Best are the suggested future efforts at economic education by ECB offered by fellow blogger HedgeFundGuy:
NAIRU and acne: minimization is the only feasible goal.
Pre-commitment and inflation targets: don't rely on what feels good at the time.
Girls, and Central Banks, should never be easy.
Students, if you get the humor there, you're ready for the final.