Hopefully this has been useful in understanding why the ECB has proceeded speedily in some areas while taking the necessary time to reflect on others. Thank you very much for your attention. References Auerbach, A. and Obstfeld, M. (2005), “The Case for Open-Market Purchases in a Liquidity Trap”, American Economic Review, Vol. 95, No 1, March 2005.
The response of governments has also been vigorous. In Europe, in particular, the budgetary plans designed to repair the economic and social damage brought about by the pandemic are a significant step not only to kick-start recovery, but also to make further progress in the institutional design of the European Union.