QE in the Euro Zone: How Can It and Will it Work?

The quantitative easing (QE) programme launched by European Central Bank (ECB) has been hailed as a long awaited decision, and the latest ECB press releases are pretty happy with the results. However, QE raises nontrivial questions regarding its medium-term effectiveness net of concomitant facors. Firstly, assessment of experiences of QE forerunners (United States, United Kingdom, […]

Saving the Eurozone from Stagnation: Can Draghi Do it Alone?

With inflation declining and constantly undershooting forecasts, and the economies gripped by fiscal austerity, zero-lower bounded interest rates, and gloomy expectations, the Eurozone may have found itself caught into what Caballero and Fahri (2103) call a ‘safety trap’, i.e., an excess demand for safe assets (money and government bonds). Essentially, agents in the Eurozone have […]