Quantitative easing in the euro zone: Better late than never

Posted: January 23, 2015 in economy
Tags: , ,

UK Only Article: 
standard article

Issue: 

America’s new aristocracy

Fly Title: 

Quantitative easing in the euro zone

Rubric: 

The policy will help, but less so than in other big economies

AFTER months of debate, having exhausted all the alternatives, the European Central Bank (ECB) announced on January 22nd that it was finally introducing a big programme of quantitative easing. It plans to spend €60 billion ($70 billion) a month for at least 19 months, adding hefty purchases of government bonds to an existing scheme to buy covered bonds and asset-backed securities (currently around €10 billion-worth a month). Special rules will apply to purchases of the bonds of countries like Greece which have received bail-outs. The bulk of any losses on sovereign debt that has been purchased will be borne by national central banks.
QE—creating money to buy financial assets including sovereign bonds—was first used by the Bank of Japan in the early part of the 2000s; the Federal Reserve and the Bank of England introduced it in the wake of the financial crisis of 2008. Long-standing …

via Economic Crisis http://ift.tt/1y2RcXi

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s