As part of ‘Fiscal Matters’, which brings together social, environmental, civil society and academics to discuss the future of Europe’s fiscal policy, Frances Coppola, financial economist, author and blogger spoke about the optimal fiscal and monetary policy mix. We caught up with her after the event.
EU Reporter: Do we have the right balance between monetary and fiscal policy at this moment?
FC: At this moment, I think that governments and central banks are getting it about right in terms of monetary and fiscal policy, we’ve ended up because of the pandemic, in a paradigm where governments are doing whatever it takes to support their economies, just to keep people alive, to enable businesses to survive. Central banks are doing two things. First of all, they are stopping markets