Germany Moves at Last

Today Angela Merkel has announced a budget designed to save the German economy from the Corona virus and protect thousands of businesses from imminent ruin.

The government is expected to approve new borrowing of €356 billion which is equivalent to nearly 10% of Germany’s GDP. That it is huge and quite unprecedented!

This is a significant change in fiscal policy and a radical departure from German austerity and their aversion to debt.

The Germans can well afford such a policy and so could a few other Nordic Countries too!

Interest rates will rise…

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