In short, these failures rooted in the financial system interacted with weaknesses in the global monetary system to create stresses and instabilities that eventually triggered – and amplified – the recent financial crisis and subsequent recession. Other economic crises can similarly be traced to the interaction of weaknesses in the global monetary and financial systems.
Is helicopter money something you would ever consider appropriate, or does it blur too much the boundaries between fiscal and monetary policy? We need to have an independent budgetary instrument at euro area level with a countercyclical function and institutional governance that is different from the present set of rules.