Forum With the spectre of a recession looming in the eurozone (and elsewhere), the policy question arises as to how much leeway do the fi scal authorities in the eurozone have to follow counter-cyclical fi scal policies aimed at providing some stimulus to the economy. This question is important because it appears that the capacity of the European Central Bank (ECB) to provide for such a stimulus is limited. The ECB has fl ooded the markets with trillions of euros in liquidity (money base) since

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... 2015. It is diffi cult to see how adding a couple of hundred billion euros of money base, most of which is likely to be hoarded or put to