Wednesday, 23 August 2017

European Central Bank President Mario Draghi quantitative easing has made economies more resilient



European Central Bank President Mario Draghi has said unconventional policies like quantitative easing (QE) have been a success both sides of the Atlantic.


QE was introduced as an emergency measure during the financial crisis to pump money directly into the financial system and keep banks lending.


A decade later, the stimulus policies are still in place, but he said they have "made the world more resilient".


But he also said gaps in understanding these relatively new tools remain.


As the economic recovery in the eurozone gathers pace, investors are watching closely for when the ECB will ease back further on its 60bn euro (£55bn) a month bond-buying programme.
Central bankers, including Mr Draghi, are meeting in Jackson Hole, Wyoming, later this week, where they are expected to discuss how to wind back QE without hurting the economy.


On Monday, a former UK Treasury official likened the economic stimulus to "heroin" because it has been so difficult to wean the UK, US and eurozone economies off it.




BBC      News.