How The Placebo Effect Of Cheap Money Has Killed Fiscal Reform In The Eurozone

Governments all over the eurozone identify low yields as some kind of market validation of their policies, when markets are artificially inflated by the central banks’ policies. This placebo effect has led many countries in Europe to abandon the reform impulse, and many believe that the solution to low growth is to return to the wrong policies of 2008.

 

 

 

 

 

 

 

https://mises.org/wire/ecb-continues-incentivize-reckless-behavior

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