Thursday, May 27, 2021

Bill Mitchell — ECB realises it has to keep funding Member State deficits for the foreseeable future

Well, the Melbourne virus outbreak has scuttled lots of plans and events. We wouldn’t be in this situation if the Federal government had have invested in dedicated quarantine facilities last year when they were told to and taken advice to ensure their vaccination purchases were sufficient. Anyway, that is for another day. Today, I have been examining European data and matching them against a recent interview (May 26, 2021) – Interview with Fabio Panetta, Member of the Executive Board of the ECB, conducted by Jun Ishikawa – that Nikkei published yesterday. Things have changed a bit in Europe since the GFC although the fundamental problem of the Eurozone remains – there is a disjuncture between fiscal responsibility and fiscal capacity and the only way that that mismatch is being addressed is the via the on-going ECB funding of fiscal deficits, despite the denial that that is what is happening. It is plainly obvious to all.
Bill Mitchell – billy blog
ECB realises it has to keep funding Member State deficits for the foreseeable future
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

1 comment:

Matt Franko said...

“ if the Federal government had have invested in dedicated quarantine facilities last year when they were told to and taken advice to ensure their vaccination purchases were sufficient. ”

Who could construct the quarantine facilities if everyone was in quarantine?

Australia vaccine rate says currently 1.9% ??? Whaaaaaaaaatttttt???

Too cheap to kick Pfizer the 20 bucks? Out of money? USD zombies don’t want to give them up? Wtf is going on down there?