'Member states are currently debating how to finance the fight against COVID-19. As time is pressing, practical and readily implementable solutions are needed now. Using the ESM to provide the funds needed is a reasonable and workable way forward. Italy, Spain and other states would benefit from using the ESM access to AAA funding to reinforce their debt dynamics: a combination of loan size, maturity and interest rates would strengthen debt sustainability. This column shows the stabilisation power of an ESM-ECB intervention, using existing instruments and the just announced ESM Rapid Financing Instrument, showing the case of Italy as an example. Combining ECB support with ESM funds would deliver a more resilient euro area, better placed to engage in a post-virus economic recovery. The announced EIB guarantees and the SURE unemployment re-insurance will also help countries. However, these measures are not a supplement, but a complement, to the already feasible ESM financing discussed.'
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The ESM can finance the COVID fight now, April 6, 2020
Context(EU) - European Investment Bank - '..supporting European R&D projects..''..BIS chastises central banks .. More fundamentally, monetary policy cannot be the engine of growth.''Two Interest Rate Theorems' - 'Disinflationary effects of technology, aging demographics and excessive debt' - '..the bursting of China’s historic Bubble..'(Banking Reform) - '..my basic definition: A Bubble is a self-reinforcing but inevitably unsustainable inflation.'