ECB Quantitative Easing: What Are the Side Effects?

Please note: Each In-Depth Analysis is assigned a DOI (digital object identifier), which is a safe and long term way of ensuring a hyperlink to the full text of this report. However, when ESO creates this record, on occasion the DOI still has not been activated by the EU Bookshop. If you find the source url hyperlink does not work please use the alternative location hyperlink listed as a related url.The notes in this compilation analyse the potential side effects of the ECB expanded asset purchase programme (Quantitative Easing or QE) by focusing on the channels through which monetary policy may affect the distribution of income and wealth, e.g by favouring financial rather than labour income. The notes also discuss the potential financial/fiscal risks related to QE through its effects on the allocation of consumption and savings, in the context of an aging population.

The notes prepared by key monetary experts were requested by the Committee on Economic and Monetary Affairs (ECON) of the European Parliament as an input for the June 2015 session of the Monetary Dialogue between the members of the ECON Committee and the President of the ECB.

The Analysis was publicly made available in the summer of 2016.

• Primary Source

European Parliament: Directorate-General for Internal Policies of the Union: Publications available via the EU Bookshop http://bookshop.europa.eu/en/directorate-general-for-internal-policies-of-the-union-cbf.cKABstF7wAAAEjwYYY4e5K/

European Parliament: European Parliamentary Research Service: In-Depth Analysis, June 2015: ECB Quantitative Easing: What Are the Side Effects? [published 2016] http://www.europarl.europa.eu/RegData/etudes/IDAN/2015/587287/IPOL_IDA(2015)587287_EN.pdf

ESO: Background information: The ECB’s ‘unorthodox’ monetary policy [What Think Tanks are thinking] http://www.europeansources.info/record/the-ecbs-unorthodox-monetary-policy-what-think-tanks-are-thinking/

European Parliament: European Parliamentary Research Service: In-Depth Analysis, March 2015: ECB Quantitative Easing (QE): Lessons Drawn from QE Experiences Carried Out by Other Major Central Banks http://www.europarl.europa.eu/RegData/etudes/IDAN/2015/587289/IPOL_IDA(2015)587289_EN.pdf

European Parliament: European Parliamentary Research Service: Publications: Tag: Economic and Monetary Issues http://www.europarl.europa.eu/thinktank/en/search.html?policyAreas=ECOMON

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