ECB Has Legal Leeway on Helicopter Money, Deutsche Bank Says
- Lack of explicit prohibition could make cash drops feasible
- EU law an obstacle to government financing, research shows
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The European Central Bank may have the freedom to pursue the most extreme forms of monetary financing should the economic situation warrant, Deutsche Bank AG said.
“The ECB at face value faces the strictest legal obstacle to monetary financing, not least due to the historical inflation traumas experienced by member states,” analysts including London-based George Saravelos said in a research paper published Thursday, citing Article 123 of the European Union’s governing treaty. “These restrictions notwithstanding, the treaties leave considerable more leeway than first meets the eye.”