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Krugmanomics was a nonstarter because the gold standard encourages fiscal and monetary discipline, not recklessness.
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Only Germany rejects this mindset, preferring to maintain fiscal and monetary discipline and earn its exports by making good products efficiently.
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The upside: Thailand's new leadership has been lauded for monetary discipline, market-friendly policies and its determination to adhere to the IMF program.
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What it did comprise, in summary, was fiscal and monetary discipline, opening up to foreign trade and investment, and large-scale privatisation and deregulation.
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Its monetary and budgetary discipline must be approximately the same as those in the other Euro countries.
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These often concern macroeconomic questions such as monetary policy and fiscal discipline, and the means of globalisation, such as free trade and foreign investment.
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They may not really expect the head of their central bank to get the job, but they must surely expect to get a concession of some kind perhaps the inclusion of Italy in the first intake of single-currency participants, perhaps a weakening of the terms for budgetary discipline when economic and monetary union is in place.
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But the dilemma is how to make fiscal policy more flexible, in order to take pressure off monetary policy, while still maintaining long-term discipline.
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No wonder international bureaucracies such as the International Monetary fund and European Central Bank are producing research showing that spending discipline is the right approach.
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The objective of the SGP was for strict fiscal discipline to be maintained and enforced in the process of European Monetary Union (EMU).
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Some may jib at this Teutonic discipline, which foolishly constrains fiscal policy at a moment when the loss of an independent monetary policy argues for more, not less, fiscal flexibility.
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