Quantitative Easing Infographic

source: http://www.bbc.com/news/business-15198789

source: http://www.bbc.com/news/business-15198789

Quantitative easing (QE) is the European Central Banks (ECB) new tool towards fighting stagnant growth. The ECB hopes that lower interest rates will spur consumer and business spending. Inflation caused by QE may not seem like a problem at all to the ECB, as they struggle to fight off a relatively low inflation rate (target rate is 2%, current rate is 0.3%). A boost in spending may possibly stop potential deflationary prices while increasing economic growth, reviving the eurozone from its economic slump.

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