HFXE - Eurozone Recovery Falters - What's Next

This opinion piece was written just prior to the outbreak of the coronavirus epidemic in the West. The authors believe that the pandemic will increase the necessity and therefore the probability of fiscal integration in the eurozone.

Based on the leading economic indicators, the eurozone economy may be heading for a prolonged slowdown or possibly a mild recession. A deeper or longer slump cannot be ruled out if weakness starts to feed upon itself. Surely, room for macroeconomic policy action to stem the downturn will be critical.

But how much room is left for policy

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