Cyprus Mail

ECB’s quantitative easing likely to prove ineffective

ECB President Mario Draghi

By Stelios Orphanides

A European Central Bank decision to buy government bonds expected tomorrow, also known as quantitative easing, is likely to have a limited if not questionable effect, people familiar with the issue said.

Doubts on the effectiveness of the ECB’s efforts to preserve the euro emerged after the ECB appears to have scaled down to 0.5 trillion euros, half the initially announced seize of the bond purchasing programme, to which Germany’s government, the Bundesbank and economy are opposed, citing fears German taxpayers would ultimate burden the bill for the reckless government spending in other euro area member states.

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