Patrick Artus, Research Analyst at Natixis, suggests that the next president of the ECB, who will be appointed in late 2019, will inherit a situation where there is no longer any monetary policy leeway in the event of a slowdown in activity and will have a tough job in hands. Key Quotes “If growth declines, governments in euro-zone countries will revert to an expansionary fiscal policy, and, given the already very high levels of public debt ratios, the ECB may be forced to monetise these fiscal deficits (and therefore to restart the quantitative easing programme).” “The ECB may also be faced with public debt crises, in the absence of a mechanism for risk mutualisation between the euro-zone countries, with the risk that some countries may conduct abnormally expansionary fiscal policies or may be in a situation of political crisis with Europe.” “The ECB will have to decide whether to support these countries, with the risk of giving rise to significant moral hazard, or to not support them, with the risk of breaking up the euro.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next German ForeignMin Maas: ‘US is not an enemy, but our most important partner and ally’ FX Street 5 years Patrick Artus, Research Analyst at Natixis, suggests that the next president of the ECB, who will be appointed in late 2019, will inherit a situation where there is no longer any monetary policy leeway in the event of a slowdown in activity and will have a tough job in hands. Key Quotes "If growth declines, governments in euro-zone countries will revert to an expansionary fiscal policy, and, given the already very high levels of public debt ratios, the ECB may be forced to monetise these fiscal deficits (and therefore to restart the quantitative easing programme)." "The ECB may also be… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
