Unfortunately, current ECB led fiscal redistribution scheme via negative rates and financial asset purchases seems to be working.
ECB collecting EZ interest payments and somewhat equitably redistributing them back to the Treasuries of the member nations for fiscal spending and deficit reduction; ie redistributing EUR balances that would probably otherwise be saved by the non-govt recipients.
Very frustrating for all the "deficit too small!" people...
Booming euro-area factories expand at fastest pace since 2000 https://t.co/qwHfC43mga via @aspeciale pic.twitter.com/FnFpTeqm25— Bloomberg Markets (@markets) December 1, 2017
I have always read that even with austerity the recession will finally come to an end, but it would have ended a lot sooner without austerity.
ReplyDeleteThe cycle always turns. It can be dampened
ReplyDeleteAlso there are only two things to do with savings. You either accommodate them with monetary expansion, or you confiscate them.
Looks like Matt is in the latter group - with an unelected set of technocrats doing the taxing by stealth.
Neil
ReplyDeleteI’m not trying to make any non technical points... about what the ECB is doing anyway ;)
The important thing is to identify the function... not a particular output of a function that is never identified...
Kaivey we don’t really know if “austerity” was really implemented without looking at the detailed record of the national Treasury account withdrawals...
ReplyDelete