International Monetary Fund. Former visiting scholar at SAIS, Johns Hopkins. Former chief European economist at Barclays. Views are my own.
Mar 9, 2020 • 9 tweets • 3 min read
(1/9)
@ECB has to react this week to #COVIDー19 as EA heads into a recession
There is more limited fire-power at the ECB than at the Fed, but it does not mean the ECB won't act
Targeted support for SMEs is crucial
Time to learn about the reaction function of ECB's new owl
(2/9) 1. While there is far more limited fire-power at the ECB than at the Fed, it does not mean the ECB won't act; it will
2. The ECB will try to support SMEs through TLTRO possibly introducing full-allotment
