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miércoles, 19 de mayo de 2021

We’ve got a serious pan-European constitutional problem -not just a German one

"We’ve got a serious pan-European constitutional problem -not just a German one", my entry on Epicenter about the German Constitutional Court (Bundesverfassungsgericht-BVG) rulings on the ECB's QE and the NextGenerationEU Programme.

When rules are replaced by institutions to drive a process, incentives become critical. The present set-up transfers the worst counter incentives onto political and economic stakeholders: fiscal incontinency, debt addiction, poor innovation, and productive stagnation. The ECB has become a non-stop financial market-distorting force exclusively based on the (virtually) infinite power to create money.

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