Terzi, A. (2014) “Europe Must Escape A Savings Trap, Not A Liquidity Trap“, Social Europe Journal, 23 Ιουλίου.
The anti-austerity vote in the European elections reflected two different kinds of discontent. One is a feeling of frustration, which is invigorating nationalism: the vote for “less Europe.” The other is a lack of confidence in current EU policies: the vote for “another Europe.” In both cases, voters revealed that they have lost interest in blaming the crisis on U.S. bankers or on national governments (for not complying with EU rules) and instead are pleading for effective job-creating policy solutions, either delivered by European institutions or, if they are unable, from national governments free of EU restrictions.
Shortly after the European vote, the ECB Governing Council unanimously approved a package that supposedly should inflate the Eurozone economy and get it out of a liquidity trap condition. If the move succeeds, it would reduce some anti-austerity pressure. If the ECB again fails to revive the economy, it will become increasingly difficult to defend the existing fiscal rules in Europe. Indeed, those who fear a departure from austerity claim that the ECB could and should do more to take Europe out of the slump in which it has been languishing for almost six years. They claim that the ECB has more power and bullets with which to reflate Europe and end the liquidity trap.
Σχετικές αναρτήσεις:
- Merler, S. (2014) “Shrinking times – ECB excess liquidity falls below €100 billion“, Bruegel Think Tank, 24 Απριλίου.
- Magnus, G. (2014) “The ECB and Sisyphus: it won’t be finished unless it does QE“, Pieria Online, 09 Ιουνίου.
- Aziz, J. (2014) “Is It Time To End Fractional Reserve Banking?“, Pieria Network, 12 Μαΐου.