Mo’ money, mo’ problems. As the economic crisis envelops Europe amid the coronavirus pandemic, the European Central Bank is throwing money at the problem.
Like the red-jumpsuit robbers in “Money Heist,” the European Central Bank simply will print more money. An additional $605 billion will be produced in hopes of curtailing an economic crisis that is expended to extend well into 2021.
The ECB’s de facto money-printing program is now worth $2.24 trillion in stimulus, according to a statement that the Central Bank released Thursday.
“The monetary policy measures taken today will contribute to preserving favourable financing conditions over the pandemic period, thereby supporting the flow of credit to all sectors of the economy, underpinning economic activity and safeguarding medium-term price stability,” the statement said.
The Eurozone economy move was prompted by a second wave of coronavirus cases and uncertainty about when vaccines will be distributed, ECB President Christine Lagarde explained at a news conference.
This marks the second Pandemic Emergency Purchase Programme rollout. A June addition injected $726 billion. After a third-quarter rebound to levels still lower than 2019, fourth-quarter declines are expected in Europe with new coronavirus lockdowns in France, Germany and Italy.
Then there is the issue of Poland and Hungary starting a delay in the continental release of $969 billion in recovery funds, which are badly needed in Greece, Italy and Spain.
So if you need to feel better about the decline of the U.S. economy, just look to Europe.