Yellen, Lagarde and the risks of maximum monetary and fiscal firepower

The European Union could not have expected anyone better than Janet Yellen as Secretary of the Treasury of the future administration of Joe Biden to restore some order and cooperation in the management of transatlantic and world economic affairs. The former president of the Federal Reserve is considered a New Keynesian, willing to give multimillion-dollar incentives in the United States to face the economic crisis caused by the coronavirus pandemic, as the EU should do with its Recovery Fund. But not only. Brussels hopes that Yellen will adopt a Antithetical approach to current Secretary of the Treasury Steven Mnuchin on economic and trade disputes between the United States and the European Union. Enough with the tariff policy imposed or threatened against Europe and Germany, guilty in the eyes of the Trump administration of creating trade surpluses that are detrimental to American workers. Europe can hope to reach an agreement in the Organization for Economic Cooperation and Development on the taxation of multinationals and digital giants. Finally, the EU can dream ofalliance with Yellen on climate and China.