The European Central Bank boss is deliberating the launch of another round of quantitative easing,but other factors could lessen its effectivenessThere is a strong argument for Mario Draghi to sit on his hands and do nothing. The boss of the European Central Bank (ECB) may occupy failed earlier this year to slay the dragon of deflation when he launched €60bn (43bn) a month of quantitative easing, but his policy worked to some degree and in any case, or for now his weapons are ineffectual.
The City loves cheap credit and is cheering on Draghi to nick interest rates or boost the QE programme,based on the time-honoured theory that central bankers with loose monetary policies can prevent their economies slipping into negative inflation. Related: Mario Draghi: ECB prepared to nick interest rates and expand QE Continue reading...
Source: theguardian.com