Professor of Economics, Franklin University Switzerland
Oct 30, 2020 • 6 tweets • 2 min read
Update of sectoral financial balances (flow of funds) in the #Euroarea (EA)
---Chart built on @ecb data - now including 2020 Q2---
*This time is different*
With the #COVID19 shutdown, households’ financial savings have been rising fast, as expected.
1/6
Before the virus tsunami hit, the balance of non-financial corporations had turned negative with rising capital spending.
It is now slightly positive, reflecting the net effect of lost revenue and a faster falling rate of investment.
2/6
Sep 8, 2019 • 6 tweets • 2 min read
Monetary sovereignty and the funding of the economy in the #euro area. Thread 1/6
Every currency has an issuer that is “sovereign”. The € issuer is the ECB created under the shared sovereignty of 19 States. States agree to prohibit that the ECB gives unlimited support to any of those States. Thus, only private debt or exports fund the private sector. 2/6
