German fiscal rethink might backfire on euro zone

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ECB boss Christine Lagarde wants Germany and the Netherlands to spend more. But even if she gets her way, the economic benefits for others may be limited, writes Unmack1:

The euro zone should roll out a common fiscal stabilisation mechanism, rather than asking Germany or the Netherlands to boost spending, European Central Bank policymaker Pablo Hernandez de Cos said on Nov. 5.

The ECB’s new president, Christine Lagarde, had called on Germany and the Netherlands to boost spending in an interview on Oct. 30, days before she took office.

 

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