Economics
ECB’s Schnabel Says Bank-Government Dependence Can Boost Growth
- Board member says broad public support will limit scarring
- Also warns not to let vicious circle of debt crisis return
Isabel Schnabel
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
European Central Bank Executive Board member Isabel Schnabel said the mutual interdependence of banks and governments can boost economic growth after the pandemic -- in contrast to the bloc’s sovereign debt crisis when it was seen as fundamental problem.
“Contrary to the vicious ‘sovereign-bank’ nexus that plagued the euro area throughout most of the last decade, the current nexus, if managed properly, can be an engine for a faster recovery, which also supports the ECB’s price-stability mandate,” she said at online conference on Thursday.