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"The combined monthly purchases of public and private sector securities will amount to €60bn euros,” said Mr Draghi at a press conference following a meeting of the ECB’s governing council.
“They are intended to be carried out until end-September 2016 and will in any case be conducted until we see a sustained adjustment in the path of inflation," he added, meaning the package will amount to at least €1.1 trillion.
Mr Draghi’s package of asset purchases, including bonds issued by national governments and EU institutions such as the European Commission, is intended to boost the eurozone’s flagging economy and to ward off the spectre of deflation.
The ECB president shrugged off determined opposition led by German officials with a pledge to buy 60 billion euros every month through September next year in a once-and-for-all push to put more cash into circulation and revive inflation. To assuage critics, the region’s 19 national central banks will make 80 percent of the purchases and take on any risk they carry.
originally posted by: supermouse
a reply to: Cabin
This is illegal (in the EU it is against the law to fund government spending by printing euros). Also it is clearly against the German constitution.
You can see why they did this after watching with envy as QE made the rich richer and the poor poorer in the UK and US. However, I'm not sure the Germans will stand for it.
It's good in a way that the EU is collapsing into lawlessness since this should hasten its break-up. Germany and Greece seem to be in a race to get out of the euro zone.
Printing money to finance Government debts is illegal under European Union treaties. But the ECB says QE is a purely monetary tool, in line with its mandate to ensure stable prices.