Euro and mutualisation of debt
11th May, 2020 10:17 am The monetary mutualisation of Eurozone debt (or its sovereign risk) through the ECB is becoming more likely. The fiscal monetisation of debt through the issue of Coronabonds is becoming less likely.
Monetisation is feasible. The arithmetic works. If you add up all projected fiscal deficits in the Eurozone for this year, the total comes to almost exactly the fire power the ECB has approved.
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