“Another Bad Idea” By Jack Salmon, courtesy of the Mercatus Center There is a disconnect between proposed stimulus spending and improving economic conditions. Policymakers have been quarreling over the content and size of a proposed new stimulus spending bill for five consecutive months now. In the latest round of discussions, Democratic lawmakers called for […]
Tag: stimulus
The race for CARES Act (taxpayer) broadband funds
By Johnny Kampis, Taxpayers Protection Alliance As the race for broadband funds from the CARES Act heats up, policy experts and taxpayer advocates hope the money ends up in the right place to help close the digital divide. The relief package, passed and signed into law in March, included $150 billion in relief […]
EU should sell “safe” and “junior” bonds based on risk
“An option for the EU: blow up debt inside a bunker” By Sergio Baggiani, courtesy of IREF Debt mutualisation is an option to manage the expected rise of sovereign debt and the need for a greater supply of low-risk bonds. Yet, this option could run into political difficulties. European Bonds (details here, 2016) are […]
Emergency COVID-19 Stimulus Programs Are a Short-Term Solution
By Thomas Hoenig, courtesy of the Mercatus Center The federal government and the Federal Reserve have implemented unprecedented spending and monetary policies to combat the economic crisis resulting from the COVID-19 pandemic. These policies, while necessary in the short term, place an ever larger mortgage against the nation’s future income; and extending them […]
IMF should double funds to $2T, offer debt moratorium for COVID-19 crisis response
“COVID19: Increase in IMF resources and debt moratorium urgently needed” By Cristoph Trebesch and Rolf J. Langhammer, courtesy of IfW Kiel Never in its 75-year history has the IMF been more important for global financial and economic stability than now in the corona pandemic. Already 90 countries have applied for credit assistance in […]
Attach green conditions to recovery aid, say environmentalists
“A Green Recovery” By Dirk Schoenmaker, courtesy of the Bruegel Institute Governments have multiple goals including economic growth, social inclusion and environmental preservation (Schoenmaker, 2020). The COVID-19 pandemic has had a sharp negative impact on the economic and social fronts (deteriorating health, reduced income and job losses). By contrast, environmental performance […]
Spain faces tough choices for economic stimulus, qualitative reforms needed
“Will economic measures against the coronavirus be effective?” By Hugo Pereira, courtesy of Civismo We are, without a doubt, facing a historic moment. The coronavirus not only infected people, but practically all of the social spheres: politics, the economy, and even our own psychology. We have come to realize that we are not as […]
Breaking the “black zero”: Germany has room to spend more
“How much space for fiscal expansion? Germany falls victim to ‘output gap nonsense’” By Philipp Heimberger, courtesy of WIIW The German economy is in a downturn. The growth rate is currently among the lowest in the euro area, and numerous economic research institutes have revised their forecasts downwards. German industry is already in recession. In […]
ECB stimulus is on collision course with German constitution
“The euro and the German constitution” By Prince Michael of Liechtenstein, courtesy of GIS (Ed: revisiting in light of the fresh legal challenge in Germany to ECB bond-buying, filed October 8). Two legal challenges to the EU central bank’s most controversial policies have […]
Is ECB stimulus too late?
While monetary “hawks” tend to reject any further monetary easing from the European Central Bank like the plague, doveish types are afraid that the ECB’s latest round of easing didn’t go far enough, and may have come too late anyway. The doves’ point […]