Daniel Gros, Angela Capolongo, (2019), «Fiscal policy cannot save the ECB», VoxEU, 3 December
Given persistently low inflation, sluggish growth, and global uncertainties, the ECB needs to provide even more monetary stimulus. However, with interest rates already negative and strong opposition to further asset purchases (Financial Times 2019), it seems to have run out of ammunition. This is why the parting ECB President, Mario Draghi, called for fiscal policy “to do its part” in the latest press conference
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- Project Syndicate, (2019), «The Return of Fiscal Policy», 18 September