Fiscal expansion needed to sustain demand - ECB's Schnabel
English News 24.11.2020, 17:05
This is why fiscal expansion is "indispensable in order to sustain demand and mitigate the long-term costs of the crisis," she explained.
Schnabel also discussed the possible policy directions in light of the current low inflation in the euro area. "By accepting a somewhat slower return of inflation towards their aim, and by focusing more on the duration of policy support, central banks may effectively mitigate potential risks to financial stability arising from a more intense usage of their policy instruments in the pursuit of their mandate," she said.