Growth is slowing in the major economies (see survey graph below), and stimulus is needed to move back into a higher gear. The European Central Bank changed its guidance this week, suggesting another rate cut could occur even as its key interest percentage is set at zero. Bank President Mario Draghi wants fiscal spending to increase, especially in Germany. As the largest economy in Europe, Germany is heavily dependent on export markets and has been hurt by the geopolitical uncertainty imposed by Donald Trump. The Germans are hugely frugal, but 62 percent of the top economists surveyed by the Initiative on Global Markets say, “When the economy is operating below its potential and monetary policy is at the effective lower bound, fiscal...

TAGS – Europe, North America, Macroeconomics