Quantitative easing program boosts Eurozone economy

Global Business

Quantitative easing program boosts Eurozone economy

It has been almost two years since the European Central Bank launched its quantitative easing program in an attempt to increase inflation and boost the Eurozone economy.

Has the program been effective and will the ECB extend it? CCTV’s Mariam Zaidi has the story from Brussels.

Quantitative easing program boosts Eurozone economy

It has been almost two years since the European Central Bank launched its quantitative easing program in an attempt to increase inflation and boost the Eurozone economy. Has the program been effective and will the ECB extend it? CCTV’s Mariam Zaidi has the story from Brussels.

In March 2015, the European Central Bank launched a massive program to buy sovereign and private debts from Eurozone banks.

The aim of Quantitative Easing is to inject liquidity into the monetary system, increase inflation and to exit the deflationary spectrum. All of this creates a ripple effect that can help boost growth.

But 20 months after launching the monetary easing program, does it still hold merit

The European Central Bank uses all conventional monetary tools available to keep inflation down. Today the rate of inflation for the Eurozone sits at 0 percent. What this means is that the cost of borrowing money is zero. But despite their efforts, Eurozone economies are still struggling.


Ann Pettifor on European Central Bank launched its quantitative easing program

For more on the ECB’s decision, Rachelle Akuffo spoke to Ann Pettifor, a global financial system analyst and macroeconomics policy research director.