ECB – the fine line between stimulus and exuberance
Economic conditions and prospects in the euro area have improved. Markets are exuberant, and the ECB expects the pickup in inflation to prove temporary. Soon however the ECB will have to consider when to start ‘leaning against the wind’. Macro-series-ECB-the-fine-line-between-… Become a member to read the rest of this article Username or E-mail Password […]
EUROZONE: PSPP and the risks of oversimplifying constitutional complexities
● European institutions have given a lukewarm reception to the German constitutional court (BVerfG) ruling on the public sector purchase program (PSPP). ● While ECB President Christine Lagarde claimed the bank was undeterred by the ruling, other statements suggest that some EU… Become a member to read the rest of this article
GERMANY: ECB can still save PSPP, but medium-term political questions loom
● Today’s constitutional court ruling still allows the Bundesbank to continue participating in the European Central Bank’s (ECB) public sector purchase program (PSPP) – as long as a new ECB decision is taken within three months. ● Reluctantly, the court also accepted the view … Become a member to read the rest of this […]
GERMANY: The constitutional conundrums of ECB bond buying
● The governing council of the European Central Bank (ECB) will convene digitally on 30 April. ● While speculation continues about an expansion of its PEPP bond-buying scheme, yet another German constitutional court ruling on Eurozone crisis fighting is expected for 5 May. … Become a member to read the rest of this article
EUROZONE: Three takeaways from yesterday’s deal
Finance ministers in the Eurogroup reached a deal on a support package to battle the economic effects of the Covid-19 crisis last night. As expected, coronabonds are not part of the agreement. Instead, the deal consists of the Commission’s EUR 100bn “SURE” short-term work fund, E… Become a member to read the rest of […]
EUROZONE: Political incentives for treading carefully on stimulus
Concerted stimulus of a significant magnitude is unlikely in the Eurozone for now. Instead, the focus remains on a mix of deliberately lax fiscal rule enforcement and reliance on monetary policy. Germany There is no majority in Chancellor Angela Merkel’s coalition for bold ac… Become a member to read the rest of this article
GERMANY: False debt-brake alert (again)
Proposals from Finance Minister Olaf Scholz to temporarily suspend the country’s constitutional debt brake have been greeted with the usual excitement that tends to surround speculation about German fiscal expansion. Among those who quickly came out in favor of the idea… Become a member to read the rest of this article