How can quantitative easing policies be brought to an end?

The financial crisis led to unprecedented action of central banks. By providing the economy with liquidities, the American Federal Reserve (Fed) probably prevented a crisis similar to that of the 1930's. The Bank of England (BoE), the Bank of Japan (BoJ), and then rather late on the European Central Bank (ECB) launched similar policies. However, in spite of the extent of their intercession, growth has not been recovered. Debt has increased and at the same time, quantitative easing policies (QE) have led to the formation of further investment bubbles, growing inequalities and world imbalances. The situation is more worrying in the euro zone, which has been hit by domestic demand contraction policies and aggressive supervision of financial activities. Since a virtuous end to the QE policies is unlikely, it might be difficult to avoid the general restructuring of government debts. Greater coordination on the part of the central banks is still advisable to prevent economies turning inward. The danger is greater in the euro area where the management of the crisis by politicians and regulators has made the fault-lines even greater.

ESO: Background information: Quantitative Easing in the Eurozone: limited economic benefits at a high legal and political cost / The ECB's moment of truth / ECB plans to flood markets with money / Eurozone prepares for QE http://www.europeansources.info/record/quantitative-easing-in-the-eurozone-limited-economic-benefits-at-a-high-legal-and-political-cost-the-ecbs-moment-of-truth-ecb-plans-to-flood-markets-with-money-eurozone-prepares-for-qe/

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