The European Central Bank (ECB) didn’t follow other major central banks and refrained from cutting interest rates in response to the coronavirus outbreak. This signals a shift in the central bank’s preferred policy tools – read more.

That fiscal policy is becoming the new monetary policy when it comes to fighting recession was a key conclusion of PIMCO’s Secular Forum, and this was the message ECB President Mario Draghi underlined through both actions and words.

Come the fall, the ECB will likely deliver yet another easing package that could effectively deplete its monetary policy toolbox.

We believe the nominations will help Europe respond constructively to a potential crisis, with fiscal and monetary policy acting in greater unison.