The ECB has acquired a large part of the public debt of EMUs member states. This debt has lost its monetary significance. It would be a big mistake of future fiscal policy doesn't take this into account.
The European Commission presented a recovery fund for the EU. Although there a quite some hurdles to be taken, a compromise does not look out of reach. The pooling of liabilities is further completes the European capital market.
The US federal government is considering sending ‘helicopter money’ to Americans as an attractive alternative to outright monetary financing. This can be effective in slowing down a sharp decline in consumer spending, although it will probably not be enough to bring the economy back on an upward growth path.
Economic Report Dutch version
A consortium led by Facebook recently announced the introduction of a new cryptocurrency, the Libra. Unlike most other cryptocurrencies, the Libra will be fully covered by financial assets. If the Libra actually gets off the ground, it potentially also has a greater impact on the financial system than other cryptos.
The ECB could use Central Bank Securities to mop up liquidity. The use of this instrument may bring the additional advantage of the creation of a EMU-wide ‘safe asset’. This may bring advantages for the stability of the Eurozone.
EMU is vulnerable and must be strengthened. Much is possible within the current legal framework. Banking Union (incl. EDIS) must be completed and it is essential to create a pan-EMU safe asset. Moreover, the ECB needs more effective instruments.
Special Dutch version
The US dollar has been the global anchor currency since 1944. This gives the US certain advantages, but it also brings negative consequences for international stability. The global economy needs a new anchor, independent from an individual country.
The German economy is gradually losing momentum. Car sales are recovering, but damage of the third quarter of 2018 has not been repaired yet. Declining IFO indices also point at lower growth, but not a recession.