Why The Next ECB Stimulus Plan May Fail

Why The Next ECB Stimulus Plan May FailIn June 2014 I wrote an article called Draghi’s Plan does not fix Europe. In that article, I explained that the structural challenges of the eurozone -high government spending, excessive tax wedge, lack of technology leadership and demographics- were not going to be solved by a round of quantitative easing.

Now, the evidence of the European Union leads the ECB to hint at another stimulus plan. Gone is the triumphalism displayed by of the European Commission on August 2017 (read).  The “strong recovery” they credited to the “decisive action of the European Union” has all but disappeared. Continue reading Why The Next ECB Stimulus Plan May Fail

To Avoid European and Japanese Economic Stagnation, U.S. Should Adopt More Disciplined Fiscal and Monetary Policies

This is a collaboration with James Roberts published at Heritage.

SUMMARY

To Avoid European and Japanese Economic Stagnation, U.S. Should Adopt More Disciplined Fiscal and Monetary PoliciesSince the creation of the European Union, EU economic policies have been defined by a never-ending series of fiscal stimulus measures accompanied by accommodative monetary policies. Now, in the United States, some politicians on the left are demanding that the U.S. government implement similar measures. It is important to analyze the risks to the American economy inherent in such policies by examining the impact they have had on the eurozone and Japan, where they have been implemented. Continue reading To Avoid European and Japanese Economic Stagnation, U.S. Should Adopt More Disciplined Fiscal and Monetary Policies