A National Public Bank to Finance a Euro Zone Government

Oliver Picek
Written By SCEPA

WORKING PAPER

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This paper argues how a national public bank may be used to finance the national fiscal policy of a country within the euro zone.

The publicly owned bank would apply for funds like any other bank, legally not violating the prohibition of monetary financing provision in EU treaties. Effectively, as the profits of the bank are returned to the government, interest on newly issued bonds can be saved, freeing up additional resources for government spending and investment.

SCEPA
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