Covid-19 and Europe’s Miraculous Multiplication of Money

In the coronavirus crisis and the euro crisis that preceded it, companies saw their sales plummet and governments lost tax revenue. The missing income was partly replaced by credit, which came not only from savers but increasingly from the Eurosystem’s printing presses. A decision was made to increase the central bank’s monetary base sixfold from what it was at the beginning of the euro crisis, and for the most part has already been realized. The lecture discusses the distributive effects of these policies and the dangers they pose in the long term to the value of money, wealth, and the stability of society.

The lecture discusses the distributive effects of these policies and the dangers they pose in the long run for the monetary value, wealth and stability of society.