ECB to Start Asset Purchases Program in October – Kicking the Can of Structural Reform Down the Road
- By : JanssenReportHost
- Category : Global Economy
Today on The Janssen Report (#71): ECB will inflate their balance sheet by at least 700 billion euros to purchase so-called ‘assets’ in an attempt to stimulate the economy.
I argue this will lead to inflation in asset markets, but the positive effect on the real economy will be limited. Japan and the US have already set the precedent.
What this policy WILL do is buy time: again it seems they are kicking the can of structural reform down the road.
Correction to the spoken text in the Report: I mention ‘700 trillion’ where it should be ‘700 billion’, obviously.
View this episode of The Janssen Report here:
Cheers,
Marco Janssen