Nova SBE economists sign manifesto
Past Research News | 19 March 2020 Nova SBE economists sign manifesto

Cátia Batista, Susana Peralta, Fernando Anjos, José Tavares, Pedro Brinca and Pedro Pita Barros (who signs the English version at voxeu: are part of a group of economists who presented a manifesto defending a set of quick actions in the face of the Covid pandemic -19. "The Covid-19 pandemic is an extreme event that can threaten the survival of the European Union (EU) and the democratic regimes of its members ", they stress. That is why "the EU must act now, not only to avoid the suffering of its people, but also to save itself and the democratic values ​​it claims to defend." First of all, in order to sustain measures to support the economy, access to emergency financing is required and this implies allowing countries to now accumulate high budget deficits, without fearing for their future financing capacity, they argue. "In this context of enormous uncertainty, we believe that anything similar to deficit monetization (possibly with a different name) is a necessary part of the solution," highlight the economists. "In the face of exceptional circumstances, the European Central Bank (ECB) must be authorized to finance such a program", they add, stressing that "one possibility is that the ECB will do so in the form of long-term loans (over 50 years) at very low interest rates (possibly zero) and, of course, with amortizations that are very different over time and increasing over time. "

What's happening