Friday, June 06, 2008

Bonus Story

Bank of Estonia says price rise largely attributed to high fuel costs.

Country goes "No shit, Sherlock!"

3 comments:

Kristopher said...

but a cooldown in consumerism might do the country good

Damn right. Personally I even feel a little cheated by the fact that the "crisis" is "over" before it began. I was thinking we were easing into something a little darker that would establish some important price points and make people rethink habits. But no, Eesti Pank has conveniently released a nice rosy upward curve -- way underfitted but hard to argue against.

Yet we probably need some rainy days in the economy just as we do IRL right now.

Then again, if people buy less, some parties suffer. So who knows. It's a maddeningly complex overlapping set of feedback curves. This is why I actually hate economics.

But as you say, there's really no reason to think that anything is structurally unsound domestically. And if Estonia becomes any more integrated with the EU than it already is, there might not be need for a separate macro analysis? It does seem to mimic global trends.

AndresS said...

Hmm, I think fuel is an easy whipping boy for the Estonian Gov't. Fuel prices are up across the globe but Eesti's inflation 11.3% vs 3.6% in the EU and ~4% in the U.S.

Something must be making up that difference?

seve said...

One answer to your question is here.

http://www.nytimes.com/2008/06/08/us/08oil.html?hp

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