Fels: Just Discovering Consequences of Negative Rates

The video discusses the incomplete nature of the European monetary union, highlighting the absence of a fiscal union and the risks of political and economic divergence. It explores the effects of negative interest rates on economic behavior and the challenges they pose to traditional economic theories. The rise of populism and its impact on fiscal policy and inequality are examined, with a focus on how these factors influence European politics and economics. The discussion concludes with a cautious optimism about governments addressing these issues.

What are the main risks associated with the current state of European monetary and economic union?

How do negative interest rates affect people's behavior according to the discussion?

What role does fiscal policy play in addressing the issues of inequality and economic growth in Europe?

In what ways has the response to the 2007 financial crisis exacerbated income inequality?

What positive changes are anticipated in European politics following Brexit?