New proposal to boost Eurozone economy and tackle unemployment crisis
The article discusses how settling imbalances in the Eurozone's TARGET2 system can help boost economic growth and address issues like deflation and high unemployment. By adjusting the monetary base in proportion to each country's capital key weights, the proposed approach could lead to increased output growth, investment, consumption, and exports for countries like Germany, Greece, Ireland, Italy, Portugal, and Spain. This method could benefit surplus countries like Germany more than deficit countries, allowing them to address public expenditure needs and settle external surpluses without breaking budget rules. Overall, the proposed mechanism is seen as a fair and effective way to stimulate the Eurozone economy.