Extending Quantitative Easing: Are there Additional Risks for Financial Stability?

Author (Corporate)
Series Title
Series Details February 2017
Publication Date February 2017
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Since March 2015, the European Central Bank (ECB) has been engaged in an expanded asset purchase programme of private sector assets and sovereign bonds (so called quantitative easing or QE), which has been recently extended until December 2017, although at a slower pace. The aim of the programme is to ease monetary and financial conditions, making access to finance cheaper for firms and households. This tends to support investment and consumption and, ultimately, contributes to a return of inflation rates towards the ECB target.
Source Link Link to Main Source http://www.europarl.europa.eu/RegData/etudes/BRIE/2017/595349/IPOL_BRI(2017)595349_EN.pdf
Related Links
ESO: Background information: ECB’S Unconventional Monetary Policy. Tapering or Extension? Options on the table http://www.europeansources.info/record/ecbs-unconventional-monetary-policy-tapering-or-extension-options-on-the-table/
ESO: Background information: Monetary policy decisions, December 2016 http://www.europeansources.info/record/monetary-policy-decisions-december-2016/
EP: EPRS: Briefing: Monetary Dialogue, February 2017: Side Effects of Non-Standard Monetary Policy: How Long is the Short Run? http://www.europarl.europa.eu/RegData/etudes/BRIE/2017/595.350/IPOL_BRI(2017)595350_EN.pdf
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