Europe is stuck in a rut and it’s getting dangerous. Monetary policy is looser than it’s ever been and there’s little chance it will tighten any time soon. Is helicopter money the way out?
If growth slows suddenly due to, for example, the coronavirus – or if the Brexit transition and a re-elected Donald Trump cause a bigger dip in trade – there will be calls for more monetary easing.
The Federal Reserve has a bit more space, but if the European Central Bank (ECB) cuts its deposit rate, now at minus 0.5%,
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