| Mario Draghi urges Europe to use soaring debt for productive purposes. Europe is running up vast amounts of new borrowing because of the huge government subsidies needed to keep businesses and households afloat during the worst of the pandemic. But such debt was only sustainable if it is used for productive purposes, such as investment in youth, infrastructure for production, or research, Draghi said. “In that case, it will be seen as ‘good’ debt,” he said. “If, however, debt is used for unproductive purposes, it will be seen as ‘bad’ debt and its sustainability will be eroded.” Please subscribe to my channel and leave your comments below: ☑ Twitter - https://twitter.com/dlacalle_IA ☑ Website - https://www.dlacalle.com/en ☑ My books in Amazon - https://www.amazon.com/Daniel-Lacalle/e/B00P2I78OG Kind regards! |
Daniel Lacalle has a PhD in Economics and is author of Escape from the Central Bank Trap, Life in the Financial Markets, and The Energy World Is Flat.
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José Luis Fernández Martínez
2020-08-19 at 09:37 (UTC 2) Link to this comment
Zoy Español, cazi ná.
Finance & Economics
2020-08-19 at 09:41 (UTC 2) Link to this comment
Debt, begets more debt, not solutions.
Pro Gamer
2020-08-19 at 17:55 (UTC 2) Link to this comment
Draghi como siempre demasiado optimista. Creyó que comprando deuda española e italiana iban a usar el margen dado para hacer reformas y ahora cree que los gobiernos pueden gastar sabiamente…
Mikko S
2020-08-20 at 05:37 (UTC 2) Link to this comment
Great analysis like always!