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Europe's New Leaders Need to Think Now about the Next Economic Downturn
Europe has rebounded nicely, if unevenly, after its last double-dip recession by relying on the monetary stimulus of the European Central Bank (ECB) and other central banks. Today, however, Europe faces a potential economic iceberg when its next recession hits, though this issue seems strangely absent from the debate over who should run Europe’s major institutions later this year. Because the ECB and other European central banks will not be able to provide sufficient macroeconomic stimulus in the next downturn, a boost will have to be forthcoming instead from fiscal policy in Europe.[1] This is both good and bad ... (full story)