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Really enjoyed listening to @Paschald at the @iiea
But it's obvious that politicians/policymakers don't fully understand what the @ecb is doing, and the effect of the multiple monetary policies they are deploying.
This means they default to a conservative fiscal position.
But it's obvious that politicians/policymakers don't fully understand what the @ecb is doing, and the effect of the multiple monetary policies they are deploying.
This means they default to a conservative fiscal position.
Their fiscal risk-averse is understandable.
They're scared of financial markets.
But Central Banks shape and structure finance markets.
Unless the ECB is politically willing to throw countries to the wolves, their risk-aversion is unfounded.
They're scared of financial markets.
But Central Banks shape and structure finance markets.
Unless the ECB is politically willing to throw countries to the wolves, their risk-aversion is unfounded.
The probability of interest rates increasing is extremely low.
Whether politicians like to admit it or not, the ECB is a powerful political actor.
It is time to make this distributional politics explicit, and socialise monetary policy for the public good.
Whether politicians like to admit it or not, the ECB is a powerful political actor.
It is time to make this distributional politics explicit, and socialise monetary policy for the public good.
This also means rethinking fiscal-monetary policy.
But given the technical complexity in a lot of these economic debates, journalists tend to avoid them.
This leaves a huge political vacuum that is easily filled with soundbites and fear mongering about public debt.
But given the technical complexity in a lot of these economic debates, journalists tend to avoid them.
This leaves a huge political vacuum that is easily filled with soundbites and fear mongering about public debt.
The empirical question that Leo and Paschal need to consider is the following:
On the basis of what empirical evidence/model do they think that interest rates will rise?
On the basis of what empirical evidence/model do they think there's a strict ceiling to public borrowing?
On the basis of what empirical evidence/model do they think that interest rates will rise?
On the basis of what empirical evidence/model do they think there's a strict ceiling to public borrowing?
