It became now clear that there will be a global recession with world output going down already in the first half of the year by more than in 2008/9. Unimaginable, if the virus will stay strong still in the autumn ̶ humanly, socially, and economically. 1/4
A HUGE increase in public expenditure to support people’s incomes and keep firms/sectors afloat must happen everywhere. Central Banks must use QE to maintain low sovereign bond yields and low sovereign spreads everywhere. Yes, it is their task now. No inflation risk 2/4
German Finance Minister @OlafScholz says member states with higher debt levels should have the flexibility to do the necessary fiscal measures and should get European backing for this. „You can count on Germany” 3/4
In November 2018, at a Conference organized by the Belgium CB /ECB, I proposed, among other things, to face the next crisis (coming from different causes, of course), more QE “going beyond the self-imposed limit of 33%, if necessary.” It may be necessary. 4/4 
