Efter artikel i Spiegel om et evt. kommende opgør mellem tyske Bundesbank og ECB’s draghi:
Following this weekend’s snafu in which Spiegel said that Germany is considering suing the ECB if it launched QE, Mario Draghi reportedly made attempts to “mollify” Germany with promises that this won’t happen (it will) and that it was willing to meet – literally – with the German finance minister to appease any concerns he may have. Moments ago, Reuters reports that the meeting appears to have gone… badly.
- SCHAEUBLE SAYS ECB CAUSING ‘EXTRAORDINARY PROBLEMS’: REUTERS
Oops.He added that he doesn’t see the ECB seriously discussing helicopter money (it is) adding that ECB policy does not help trust in Europe integration, and conluded with the following condemnation of everything that has been tried, and failed, so far:
- SCHAEUBLE: FISCAL, MONETARY POLICY LARGELY EXHAUSTED GLOBALLY
Meanwhile, the IMF says that only more monetary and fiscal policy can save the world from fiscal stagnation.
While it is unclear what happens next, it is very much clear that never during the New Normal has there been so much confusion on how to proceed and what the next steps shoudl be.