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Coronavirus, Helicopter Money, Adair Turner and the end of the Euro

The Germans are averse to bold monetary policies. And they have some allies in Europe: the present Dutch and Austrian governments, for instance.

They do not forget their bad experience with printing money, a century ago. And since they can block the decisions of the European Central Bank (ECB), the other countries can do very little, even if they are in the majority.

The post-2008 years can tell us a lot about what may happen in the next months and years, in Europe, in the aftermath of the coronavirus pandemic. Continue reading “Coronavirus, Helicopter Money, Adair Turner and the end of the Euro”

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Monetary policies, helicopter money: China, USA and Europe

The Chinese authorities are often accused of being irresponsible or opportunist regarding their monetary policies. According to an article written in the Financial Times by Arthur Budaghyan, from BCA Research, China has chosen the path of unrelenting monetary stimulus.

“Over the past 10 years, Chinese banks have been on a credit and money creation binge. They have created Rmb144tn ($21tn) of new money since 2009, more than twice the amount of the money supply created in the US, the eurozone and Japan combined over the same period. Continue reading “Monetary policies, helicopter money: China, USA and Europe”

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Coronavirus pandemic: the end of globalization as we know it?

David Frum wrote in The Atlantic that the coronavirus pandemic can bring enduring barriers to international trade, travel and investment.

“Countries may decide they dare not rely on imported medical equipment, or imported antibiotics and vaccines, or other people’s air carriers. Soon we may revert to the day when each country tried to do as much as possible for itself, regardless of cost and rationality.” Continue reading “Coronavirus pandemic: the end of globalization as we know it?”