The ECB Should Do QE

As banks repay their loans from the Long-Term Refinancing Operation, the ECB’s balance sheet is shrinking. This column argues that, given the slow recovery and sustained low inflation, the ECB should replace its bank lending programme with quantitative easing. Buying short-term government debt would be consistent with the ECB’s inflation target, would keep the ECB’s […] View the full post at: The ECB Should Do QE Related posts: The Bank Lending Channel S&P Concerned of Lending Growth in China Interest Rates At Center Stage