The Wall Street Journal used to be very critical of Germany's economic and fiscal policies and big government, but now the paper is a big fan of the Merkel government. In March the conservative paper declared that Old Europe was right in rejecting Obama's calls for a huge global stimulus. And currently The Wall Street Journal (HT: John) is so thrilled by Chancellor Merkel ("Hallelujah, sister") that it wants to nominate her for chairperson of the Federal Reserve.
What happened? Chancellor Merkel rebuked the world's central bankers for being too politically accommodating:
"The independence of the European Central Bank must be preserved and the things that other central banks are now doing must be retracted," Mrs. Merkel told a meeting sponsored by Germany's association of metal- and electrical-industry employers. "We must return together to an independent central-bank policy and to a policy of reason, otherwise we will be in exactly the same situation in 10 years' time." Referring to the U.S. central bank specifically, she said "I view with a great deal of skepticism the extent of the Fed's powers." Usually when a politician lobbies a central bank, it's to demand easier money. We can't recall a similar tight-money intervention from a national leader, save perhaps Ronald Reagan's quiet support for Paul Volcker in the 1980s.
Conservative bloggers used to complain that Germany is so biased towards the Democrats. They said even a center-right party like Merkel's CDU would have more in common with the Democrats than with the Republicans. That still may be the case, but it seems that Germany's fiscal policy is now more in line with those from conservative Americans. And on a personal level, Merkel might got along better with Bush than with Obama.