Matt O’Brien describes the European Central Bank’s new $1.3 trillion quantitative easing program:
[T]he ECB will buy €60 billion, or $69 billion, of assets a month—including government, institutional and private sector bonds—and will do so until at least September 2016, or until there’s a “sustained adjustment in the path of inflation” toward their close-to-but-below 2 percent goal. To give you an idea how far away that is, prices are actually falling in Europe—a seriously worrisome sign—with euro-zone inflation currently at -0.2 percent. It’s no wonder that Europe’s economy still has 11.5 percent unemployment and is growing so slowly that it’s not clear whether it’s even gotten out of its last recession.
Cassidy has FAQ on the plan. Why it might not work: