ECB announces expanded asset purchase programme

The Governing Council of the European Central Bank (ECB) announced on the 22 January 2015 an expanded asset purchase programme. Aimed at fulfilling the ECB’s price stability mandate, the programme would see the ECB add the purchase of sovereign bonds to its existing private sector asset purchase programmes in order to address the risks of a too prolonged period of low inflation.

Jens Weidmann, President of Germany's central bank, the Bundesbank (and also a member of the ECB Governing Council), openly criticised the ECB decision on the 23 January 2015.

• Primary Source

ESO: Background information: Quantitative Easing in the Eurozone: limited economic benefits at a high legal and political cost / The ECB's moment of truth / ECB plans to flood markets with money / Eurozone prepares for QE http://www.europeansources.info/record/quantitative-easing-in-the-eurozone-limited-economic-benefits-at-a-high-legal-and-political-cost-the-ecbs-moment-of-truth-ecb-plans-to-flood-markets-with-money-eurozone-prepares-for-qe/

Euronews, 22.01.15: European Central Bank announces eurozone stimulus through money printing http://www.euronews.com/2015/01/22/european-central-bank-poised-to-announce-eurozone-stimulus-through-money-/

ECB: Press Conference, 22.01.15: Introductory statement to the press conference https://www.ecb.europa.eu/press/pressconf/2015/html/is150122.en.html

Deutsche Welle, 22.01.15: ECB unveils landmark trillion-euro stimulus http://dw.de/p/1EP4e

BBC News, 22.01.15: ECB unveils massive QE boost for eurozone http://www.bbc.com/news/business-30933515

The Conversation, 22.01.15: ECB injects €1 trillion into eurozone, but members aren’t off the hook yet https://theconversation.com/ecb-injects-1-trillion-into-eurozone-but-members-arent-off-the-hook-yet-36557

ESO: Background information: Advocate General’s Opinion in Case C-62/14 Peter Gauweiler and Others v Deutscher Bundestag, January 2015 http://www.europeansources.info/record/advocate-generals-opinion-in-case-c-62-14-peter-gauweiler-and-others-v-deutscher-bundestag/

EUObserver, 22.01.15: ECB unveils €1.1 trillion stimulus plan https://euobserver.com/news/127341

EurActiv, 22.01.15: ECB rolls dice on quantitative easing http://www.euractiv.com/sections/euro-finance/ecb-rolls-dice-quantitative-easing-311497

France24, 22.01.15: ECB plans to purchase €60 billion in bonds per month http://www.france24.com/en/20150122-ecb-purchase-60-billion-bonds-monthly-QE-deflation/

Deutsche Bundesbank: Topics, 19.01.15: 'Soundness must not take a back seat to flexibility' http://www.bundesbank.de/Redaktion/EN/Topics/2015/2015_01_19_Weidmann_soundness_must_not_take_back_seat_to_flexiblity.html?startpageId=Startseite-EN&startpageAreaId=Teaserbereich&startpageLinkName=2015_01_19_Weidmann_soundness_must_not_take_back_seat_to_flexiblity+327584

The Guardian, 22.01.15: [Editorial]: The Guardian view on QE in the eurozone: better late than never http://www.theguardian.com/commentisfree/2015/jan/22/guardian-view-quantitative-easing-eurozone-better-late-never

Blog: Bruegel, 22.01.15: The ECB has fired its bazooka http://www.bruegel.org/nc/blog/detail/article/1550-the-ecb-has-fired-its-bazooka/

Blog: Reuters, 20.01.15: Quantitative easing in euro zone requires shared risk http://blogs.reuters.com/great-debate/2015/01/20/quantitative-easing-in-euro-zone-requires-shared-risk/

Blog: Open Europe, 22.01.15: ECB QE larger than expected, but unlikely to solve Eurozone woes http://openeurope.org.uk/blog/ecb-qe-larger-expected-unlikely-enough-solve-eurozone-woes/

EurActiv, 22.01.15: Markus Ferber: ECB bond-buying plan 'beyond mandate' http://www.euractiv.com/sections/euro-finance/markus-ferber-ecb-bond-buying-plan-beyond-mandate-311466

EUObserver, 22.01.15: ECB to unveil bond-buying scheme, sceptics remain https://euobserver.com/news/127324

Euro|Topics: Main Focus, 23.01.15: ECB sends stock markets soaring http://www.eurotopics.net/en/home/presseschau/archiv/archiv_dossier/DOSSIER157161-ECB-sends-stock-markets-soaring

Euro|Topics: Who's saying what: ECB plans to flood markets with money http://www.eurotopics.net/en/home/debatten/links-2015-01-quantitativeeasing/

Deutsche Welle, 23.01.15: German financial and political leaders critical of ECB stimulus plan http://dw.de/p/1EPkv

Deutsche Welle, 23.01.15: Merkel to eurozone: ECB stimulus no excuse to slack http://dw.de/p/1EPWK

Blog: Open Europe, 22.01.15: Draghi’s €1.1 trillion QE plan – Germany reacts http://openeurope.org.uk/blog/draghis-e1-1trillion-qe-plan-germany-reacts/

VoxEU.org, 23.01.15: The ECB’s QE decision http://www.voxeu.org/article/ecb-s-qe-decision

BBC News, 22.01.15: What is quantitative easing? http://www.bbc.com/news/business-15198789

EurActiv [Opinion], 28.01.15: Goldilocks economics http://www.euractiv.com/sections/euro-finance/goldilocks-economics-311627

Social Europe Journal, 16.02.15: Fiscal Policy Coordination: A Necessary Step For The Eurozone Recovery http://www.socialeurope.eu/2015/02/fiscal-policy-coordination-necessary-step-eurozone-recovery/

https://www.ecb.europa.eu/press/accounts/2015/html/mg150219.en.html https://www.ecb.europa.eu/press/accounts/2015/html/mg150219.en.html

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