The acknowledgement by the current ECB President Mario Draghi and incumbent Christine Lagarde that fiscal policy is required to drive the eurozone forward is a “game-changer,” JDI Research founder Juliette Declerq told Real Vision.
Relying on extreme monetary policy alone led to a “vicious cycle where lower rates were actually calling for lower rates,” she said. Instead of taking advantage of lower rates to increase investment, people instead save more because they fear for future returns.
The turn towards fiscal policy is an indicator that “sentiment is spreading on the fact that [NIRP] is not