Congressional supporters of Ukraine say they won’t give up after a bill to keep the federal government open excluded President Joe Biden’s request for more security assistance for the war-torn nation.
The ECB is more independent, but that doesn’t really matter. The EU can borrow from it just like the US government does from the Federal Reserve, and the ECB’s mandate is to stabilize inflation, no matter what the EU does.
If the EU decided to borrow massive amounts of Euros to spend on weapon manufacturing and creating its own military, that would have massive ripples on the whole economy and impact inflation, but the ECB would just have to follow.
The only real difference is in foreign monetary policy: the ECB doesn’t have to listen to EU Parliament’s wishes to change monetary policy in order to weaponize it, while central banks in the US, UK, AU, China, etc. do have to listen to their respective government’s wishes to mess up the internal economy for whatever reason they see convenient.
Thanks for the explanation. I’m an American, so trying to keep our politics straight is a full time job. I haven’t had much opportunity to really look at the alternatives.
The ECB is more independent, but that doesn’t really matter. The EU can borrow from it just like the US government does from the Federal Reserve, and the ECB’s mandate is to stabilize inflation, no matter what the EU does.
If the EU decided to borrow massive amounts of Euros to spend on weapon manufacturing and creating its own military, that would have massive ripples on the whole economy and impact inflation, but the ECB would just have to follow.
The only real difference is in foreign monetary policy: the ECB doesn’t have to listen to EU Parliament’s wishes to change monetary policy in order to weaponize it, while central banks in the US, UK, AU, China, etc. do have to listen to their respective government’s wishes to mess up the internal economy for whatever reason they see convenient.
Thanks for the explanation. I’m an American, so trying to keep our politics straight is a full time job. I haven’t had much opportunity to really look at the alternatives.