04/23/2017 - Accommodative Monetary Policy Is Encroaching On Fiscal Policy
“We believe that the ECB is presently using monetary policy in effect to conduct fiscal, as well as monetary policy. Elected politicians should be up in arms; that they are not would imply either that they do not understand this or that they simply accept it. This may provide an interesting pointer as to the future of the EU itself .. Private-asset QE purchases by the ECB is a big deal, because the selection and execution of these asset purchases benefits some elements of the private sector at the expense of others .. The absence of any objection from the vast majority of eurozone governments implies acceptance of this usurpation of power by the ECB. Perhaps this portends a pathway to federalization among those countries (unlikely to include Germany) who have chosen happily to acquiesce.”
by Gordon Kerr, John Butler, with Enrico Colombatto,
