Written in March 2007: The fiftieth anniversary of the Treaty of Rome on March 25th was a day of celebration. The entity created by the treaty, the European Economic Community (now the European Union), has endured for half a century. What started as an undertaking of “the Six” (France, Germany, the Netherlands, Italy, Belgium and Luxembourg) now has 27 members. So deeply embedded is it in Europe’s collective consciousness that it is hard to imagine that the EU will not still be here when the time comes for its centennial.
Written in March 2007: The EU started life in circumstances that are almost unimaginable in today’s world and the Treaty of Rome committed members to economic and political integration that would be unacceptable to most nations in today’s world. In this sense, the Treaty was the bud whose leaves unfolded over 50 years into today’s European Union.
Written March 2007: Many central banks focus on core inflation; this is a mistake. Excluding food and energy items imparts a bias to medium-term measures of inflation. Since the goal of policymakers is stable prices overall, including those of food and energy, they should turn their attention to forecasts of headline inflation and stop focusing on core measures.