European Fiscal and Monetary Policy Response to COVID-19
The Covid-19 pandemic changed the situation for many countries and showed what could be achieved when fiscal and monetary policy linked to deal with the crisis. Fiscal policy became very expansionary, backed by central banks engaging in QE and lowering interest rates. The EU was no exception, perhaps realising it had no choice. This video by Trevor provides the monetary and fiscal responses to Covid.
Overview
In our earlier videos we looked at European Monetary and Fiscal Policy and how fiscal policy was extremely constrained in the Eurozone, in particular due to the Stability and Growth Pact and the limits this put on government deficits. Monetary policy on the other hand has been very generous, with rates below zero in the Eurozone for many years and Quantitative Easing or QE now exceeding 2 trillion Euro. The outbreak of Covid-19 changed this, in particular the fiscal policy approach and in this video we look at how the Eurozone responded to the crisis.
Key learning objectives:
What was the fiscal policy response of the EU to Covid?
What was the monetary policy response?
What is the outlook for the next few years?
Summary
Expert
Trevor Pugh
Trevor has worked in finance since 1995. He started his career in investment banking after studying Law at Cambridge and taking a Masters Degree in Financial Services from University College Dublin. Trevor spent 18 years at Barclays investment bank where he became a Managing Director and head of Gilt trading. He currently works as Chief Operating Officer for a hedge fund.
