LETTER - An article by the Bundesbank's Jurgen Stark gets some criticism from a chief economist who says this is not the time for fiscal or monetary austerity. In another letter professors Olivier Blanchard and Francesco Giavazzi say that failure to recognise the short comings of the growth and stability pact will lay the ground for a revolt by European governments that will end with the pact being scrapped or, simply overlooked.

Letter from Russell Jones, Chief International Economist, Lehman