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This is an excellent, must-read article from Ambrose Evans-Pritchard, Business Editor at the Telegraph. Check it out!
via QE central bankers deserve a medal for saving society – Telegraph.
Personally, I broadly endorse this article. Had the US and the UK not invoked QE, there was indeed a risk of society collapsing, with widespread violence in the streets. Compared to the risky but bold approach from the Anglo-Saxon economies, Germany has led the Eurozone to the antithesis, crisis after crisis, frequently testing economic, social and political boundaries to the limits. Germany has insisted on austerity and balanced budgets in Europe, refusing to give the ECB the authority for large-scale QE.
On the other hand, Germany can point to Southern Europe being slow to reform their economies, like removing labor market inflexibility in France and Italy.
Of course, there have been massive winners and losers since 2008. The ultra wealthy and the bankers have done incredibly well. The US and UK economies have rebounded. China too was bold after 2008 and her aggressive public sector investment saved her economy. In contrast, the Eurozone has been in a cancerous state.
I still believe that there is room for the Eurozone to belatedly offer massive stimulus to stop the cancer? Do you agree?