ECB Executive Board Urges Germany to Borrow and Spend

In a foolish as well as never-ending attempt to prevent price deflation and revive growth, the ECB Urges Berlin to Cut Taxes and Spend.
Berlin has hit back at calls from a top European Central Bank official urging Germany to spend more to help the eurozone escape from its economic malaise.
In one of the most politically charged statements to come from the central bank, Benot Cur, a member of the ECB’s executive board, urged Berlin to increase borrowing in order to support investment and cut taxes.
The article follows calls by ECB president Mario Draghi last month for governments to match the central bank’s steps in loosening monetary policy with growth-boosting measures. However, Mr Cur and Mr Asmussen have gone further than Mr Draghi, who stopped short of asking Germany to raid its fiscal coffers.

This post was published at Global Economic Analysis on Sunday, September 21, 2014.