ECB's Knot: Structures in Europe are not yet ready for euro bonds
Comments from Knot
I love the phrasing of this line. It's like the United States of Europe are inevitable in the minds of the elites; it's just a matter of getting the people 'ready' for them. The European leaders are so high-minded about the rest of the world but they would never dream of putting ideas like collective debt to a vote, because they don't really believe in democracy.
Other comments from Knot:
- Capital key is ECB's compass
- Deviations from capital key in PEPP are temporary
- 'Not convinced' pandemic will lead to deflation shock
- Core inflation relatively sticky in Europe
Anyone taking bets on how long the Pandemic Emergency Purchase Programme will last? I'm guessing they'll have to rename it in two years.