Talking with southern states about money policy is like asking bill clinton what to do about sexual harassment in the workplace.
Is there more to relax?
ECB has printed trillions since 2008.
Now the EU is also allowed to make billions of their own debt which will create more money printing.
All of that is contributing to inequality and high asset inflation including house prices and rents.
Why not France ?
There can be no relaxation if Spain refuses to reform the pension system and the labour laws.
Otherwise there will be just a continuation of the current problems ad infinitum.
On the other hand Spain will just break the rules regardless. It will do it until it collapses and then Germany has to step in and force all the reforms of decades in a couple of years like in Greece; the consequences will be harsher.
There’s global pressure for raising interest rates but Spain, Italy, Greece and Portugal have taken so much debt that they cannot handle the higher interest rates. They are already consistently doing deficits with 0% costs on their loans.
Watch the ECB completely out of its mandate let inflation run in the eurozone to eat up the debt of the southern countries.
what Spain and southern Europe really needs is major reforms to increase the ease of doing business, starting businesses, and running businesses. its so much paperwork and nonsense regulations, licensing etc
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Gibs money?
Talking with southern states about money policy is like asking bill clinton what to do about sexual harassment in the workplace.
Is there more to relax?
ECB has printed trillions since 2008.
Now the EU is also allowed to make billions of their own debt which will create more money printing.
All of that is contributing to inequality and high asset inflation including house prices and rents.
Why not France ?
There can be no relaxation if Spain refuses to reform the pension system and the labour laws.
Otherwise there will be just a continuation of the current problems ad infinitum.
On the other hand Spain will just break the rules regardless. It will do it until it collapses and then Germany has to step in and force all the reforms of decades in a couple of years like in Greece; the consequences will be harsher.
There’s global pressure for raising interest rates but Spain, Italy, Greece and Portugal have taken so much debt that they cannot handle the higher interest rates. They are already consistently doing deficits with 0% costs on their loans.
Watch the ECB completely out of its mandate let inflation run in the eurozone to eat up the debt of the southern countries.
what Spain and southern Europe really needs is major reforms to increase the ease of doing business, starting businesses, and running businesses. its so much paperwork and nonsense regulations, licensing etc