Probin, Jayson, (2016), “Where next for the ECB?- Part 1: Why Draghi’s ‘Big Bazooka’ isn’t quite as big as it appears”, OpenEurope, 31 March
Probably the single largest component of the latest stimulus package was the increase in the size of QE by €20bn to €80bn a month. The ECB hopes that this will further driven down interest rates across a range of assets and further depreciate the euro thus spurring investment and exports helping to bring inflation back to target. However, as Open Europe has previously noted , the nature of the Euro-zone economy means that QE is unlikely to be as effective compared with the USA or UK. Furthermore, yields have already been pushed very low across many assets classes meaning this latest expansion of QE will likely suffer diminishing marginal returns. Moreover the ECB may not even be able to continue with QE in its current form as it is rapidly running out of assets to buy.
Σχετικές Αναρτήσεις
- Gros, Daniel, Valiante, Diego, De Groen, Willem Pieter, (2016), “The ECB’s latest gimmick: Cash for loans”, CEPS, 29 March
- Wolff, Guntram B., Bénassy-Quéré, Agnès, (2016), “ECB decisions put lack of fiscal union in the spotlight”, Bruegel, 30 March