Why the US economic policy experiment is much easier to carry out in the United States than in the euro zone

The United States is carrying out a novel economic policy experiment: fiscal and monetary policies are stimulating demand at a time when the economy is at full employment. This experiment seems to be succeeding, as both the participation rate and productivity gains have risen in the United States. But it has to be pointed out that this experiment is easier to carry out in the United States than in the euro zone: The expansionary fiscal policy leads to an external deficit which is easy to finance thanks to the dollar’s international reserve currency role; As savings are mainly invested in equities in the United States (in bonds in the euro zone), the expansionary monetary policy is good for savers in the United States, thanks to the rise in equity markets; and bad for savers in the euro zone, due to the fall in long-term interest rates .