2011-10-25

This Deserves to Be Shared

Prof. Paul Gregory writes an invaluably interesting blog. You can find it here.

His most recent post deserves to be read by a wider audience, as the following excerpt demonstrates:  
The Soviet leadership did not publish deliberately falsified statistics. They just dropped statistical reporting when things went bad. Outside observers could get a sense for how well the economy was doing by the number of pages in the annual statistical handbook.

It seems as if Brussels bureaucrats have learned from Soviet practice.
The European Union Commission, in its latest proposed regulations of financial markets, wants to prevent rating agencies from releasing their reports on European Union member countries. According to the Commission spokesperson: “When the Commission comes to the conclusion that a rating is not correct, it can set it aside for a specified period of time.” The temporary ban should prevent rating agencies from pushing debtor countries deeper into crisis, the spokesperson declared.