The potential for governments to deploy fiscal stimulus policies in 2020 is creating greater optimism at this year's World Economic Forum in Davos than a year ago, according to Barclays CEO Jes Staley.
, new ECB President Christine Lagarde has joined her predecessor Mario Draghi's calls for governments with fiscal headroom, such as Germany and the Netherlands, to start fiscal spending programs in order to boost the ailing euro zone economy.as central banks around the world shifted toward more accommodative monetary policies.
He suggested that the ECB and other central banks in Europe should begin looking at scaling back negative rates, which place a squeeze on the profitability of banks by effectively charging them for deposits placed with the central bank. "They should start thinking now about the profitability of banks, much like you see in the U.S. If you dropped the European banking industry into the U.S. interest rate environment, you'd see quite an uptick in profitability."CEO Ralph Hamers, who suggested that as a politician rather than a central banker, Lagarde might be able to convince European governments to open the fiscal taps.
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