End 2017/early 2018, all major Western Central Banks will be putting a final stop to the 2008 crisis-related unconventional monetary policies, namely the famous quantitative easing policies (QEs) which enabled to provide liquidity to those banks which saw their mutual confidence for borrowing collapse in the aftermath of the subprime crisis.
Fiscal QE in rich countries
The European Central Bank, the Bank of England and the Bank of Japan are all approaching a slowdown in bond buyback. In Europe, Draghi has repeated it over and over again: the Central Bank cannot do everything and therefore structural reforms of the euro are urgently needed. This is the context is which the term of “fiscal QE” was coined, aimed at allowing the financing of infrastructure via a strengthening of fiscal policies at European level, something which would serve the real economy and would logically consolidate the Juncker investment plan.
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