The multi-billion dollar purchase of government bonds by the European Central Bank (ECB) is within reach. It is generally expected that the Governing Council will decide today the controversial measure in Frankfurt.
In this way, the central bank could bring fresh central bank money in circulation. This comes in the ideal case of banks, which bonds were bought as economic boost for businesses and consumers to.
Does economic growth to, that would inflame the last extremely low inflation again. This concerns
Controversial program
‘d finished for the time being on a broad front from a dangerous drop in prices
Such a program -. Technically called quantitative easing, or “QE” (Quantitative Easing) – however even among central bankers controversial. Critics point out the interest rates in the euro area with an interest rate of 0.05 percent is already extremely low.
The pulses further special measures are therefore limited. In addition, it is feared that the ECB brakes the reforming zeal of countries in crisis, when she will buy the States on a large scale notes.
responsibility of national central banks could
German opposition to government bond purchases ECB President Mario Draghi field with a compromise: One possibility is that the relevant national central banks only bonds of their home country to purchase – and then only for those liable
Austrian National Bank President Ewald Nowotny called in advance to prudence. the markets should not “with great excitement to” consider the decisions of the central bank.
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