The ABC’s Of The ECB’s QE
This past week, after two years of “jawboning the world to death,” the European Central Bank (ECB) launched their version of quantitative easing or QE.
Let’s walk through the program and take a look at the most important aspects of what the ECB just did.
Will It Work?
Of course, the real question that needs to be answered is whether or not it will actually lead to higher levels of inflation, employment, and economic growth?
With unemployment remaining extremely elevated, inflationary pressures plunging, and economic growth waning, you can see why the ECB has become desperate to “do something” to try and reverse the tide. However, while it is certainly hoped that the ECB can spark inflation and better economic growth with the current QE program, there is little evidence that it actually worked in either Japan or the U.S.
