How The ECB Can Structure Quantitative Easing Without Fiscal Transfers

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Series Details 16.01.15
Publication Date 16/01/2015
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The ECB has been struggling to implement a programme of quantitative easing (QE) that would successfully target deflation. The main difficulty is political, stemming from opposition from German institutions. Their argument against is that a government bond buying programme by the ECB would mix fiscal and monetary policy. This column argues the opposite – such a programme can be structured so that it does not mix fiscal and monetary policy. It, therefore, would not impose a risk on German taxpayers.

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Financial Times, 18.01.15: ECB must start with big bond-buying programme (via Euro|Topics)
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