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The European Central Bank acted to reflate its economy, following the lead of the Federal Reserve and other counterparts in injecting fresh monetary stimulus.

President Mario Draghi and colleagues cut interest rates and resumed bond buying as other signs emerged that global demand is being undermined by the U.S.-China trade war.

To get a better sense of what’s going on in the world economy, here is a collection of this week’s analysis and enterprise from Bloomberg Economics:

Draghi Gives Banks Pain Relief as ECB Negative Rates DeepenFed Loath to Follow ECB on Negative Rates Despite Trump

The ECB may be positive about negative rates and President Donald Trump tweeted he agrees, but the Fed and banking industry remain doubtful. Nicholas Comfort, Yuko Takeo and Catherine Bosley report on Draghi’s new measures, while Rich Miller outlines why the U.S. may not go below zero.

Recession Already Grips Corners of U.S., Menacing Trump 2020 BidHow U.S. Shoppers Are Carrying Torch for Economy

Out in parts of the American heartland, the view of the trade war has shaped up much differently from Washington or New York. Swing states for the 2020 presidential race are seeing pockets of recession already -- undercutting Trump’s own best case for re-election. Shawn Donnan hit the road to take a look at the economics and the politics with people such as Wisconsin factory-owner Greg Petras. On the flip-side, Vince Golle charts how U.S. consumers are propping up the economy, for now.

Trump Advisers Consider Interim China Deal to Delay Tariffs

There are signs the trade war may even be thawing. Shawn Donnan and Jenny Leonard delivered the scoop that Trump administration officials have discussed offering a limited trade agreement to China that would delay and even roll back some U.S. tariffs for the first time in exchange for Chinese commitments on intellectual property and agricultural purchases.

India’s Auto Boom Goes Bust on the Worst Sales in DecadesBMW & Co Are Losing Their Allure and Germany Is Worried

Auto manufacturers may be in the driving seat of the global slowdown. Anurag Kotoky and Anirban Nag in Delhi and Mumbai showed how automakers are slashing investment and production five years on from a credit crunch. Over in Germany, Christoph Rauwald, Carolynn Look and Elisabeth Behrmann explain how car output has slumped to its lowest level since 2010.

Can’t Spend, Won’t Spend: Why MMT in Europe Is an Uphill FightThe Plot to Scrap Germany’s Balanced Budgets Has Already Begun

The three letters that have sent shivers down the spines of debt hawks worldwide -- MMT -- are proving a tough sell in Europe. That’s because the countries that want to spend more can’t, and the ones that can, won’t. That runs up against the strategy of Modern Monetary Theory devotees who aim to keep the budget the main tool in steering the economy. Birgit Jennen takes a look at the German official who may though be willing to ease up a little.

U.K. INSIGHT: New Ways to Fight the Next Recession

The U.K. economy might need some more creative thinking around policy tools to deal with the next downturn -- without compromising the Bank of England’s independence, Jamie Rush from Bloomberg Economics writes. Potential prescriptions include a helicopter money drop, which might be both “an illusory free lunch” and “fiscal policy in disguise,” Rush notes. But that’s no reason to rule it out, especially as the U.K. stares down a recession that could hit as soon as next year amid a disorderly Brexit.

Piketty Is Back With 1,200-Page Guide to Abolishing Billionaires

The bestselling French economist returns to bookstores in France at least, with a new tome that calls for an upending of capitalism. William Horobin had a look at “Capital and Ideology,” the followup to 2013’s “Capital in the 21st Century,” which has sold more than 2.5 million copies in 40 languages.

To contact the reporter on this story: Michelle Jamrisko in Singapore at mjamrisko@bloomberg.net

To contact the editors responsible for this story: Simon Kennedy at skennedy4@bloomberg.net, Zoe Schneeweiss

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