waking up to the excellent news that @ecb will preserve the safety - and fiscal room for fighting Covid - of the Euro government debt.
Without conditionality, and without passing the ball to ESM.
Without conditionality, and without passing the ball to ESM.
Covid has now pushed Euro towards the sensible macro-financial architecture that we would have had without the crazy politics of 'risk sharing'.
As I wrote two years ago, Euro needs
As I wrote two years ago, Euro needs
no Eurobonds without safe national sovereign bonds to avoid contagion/liquidity effects
Covid has also definitively laid to rest the idea that we should rely on securitisation to get single safe asset (the SBBSies initiative of the European Commission)
what is more important, PEPP treats all Euro sovereign bonds as equivalent securities. This is the kind of capital markets integration that matters for Euroarea
read more feps-europe.eu/Assets/Publica…
read more feps-europe.eu/Assets/Publica…
excuse me, but Euro citizens cannot and should not be hostage to lawyers' takes on monetary theory/policy.
When financial structures change, so should monetary policy. Well understood everywhere except Euroarea.
When financial structures change, so should monetary policy. Well understood everywhere except Euroarea.
