Eurozone governments must pursue fiscal expansion, Praet says
ECB chief economist says monetary policy cannot support recovery without support
Eurozone governments need to pursue expansionary fiscal policies if they want to see a full economic recovery, Peter Praet said.
The eurozone’s fiscal stance was only “mildly expansionary”, the European Central Bank’s chief economist told an audience in Frankfurt on March 27. The operation of automatic stabilisers were also helping to support economic activity in the eurozone, Praet said.
But he argued that to reap “the full benefits from our monetary policy measures, other policy areas must
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