I propose the ECB distribute 1 trillion euro to the national govts on a per capita basis.
The per capita criteria means it’s not a bailout and not a ‘reward for bad behavior.’
It would immediately adjust national government debt ratios substantially downward and ease credit fears.
If there is no undesired effect on aggregate demand/inflation/etc., which there should not be, it can be repeated as desired until national government. Finances are enhanced to the point where they can take local action to support aggregate demand as desired.
[top]