The effect on aggregate demand is the same. 4  BIS central bankers’ speeches  That leaves the business sector. What can we say about its balance sheet? The business sector is of course very diverse.
[32] With these risks in mind, it makes sense for the euro area to take advantage of the favourable financing conditions created by monetary policy to launch a stronger fiscal stimulus in order to rapidly return growth to its pre-pandemic path. The focus must be on productive investment, so that spending is concentrated on projects with high multipliers.