Jury Remains Out of QE Impact on Euro Zone

All eyes will be on Mario Draghi on Thursday, when the president of the European Central Bank (ECB) is widely expected to announce an asset-buying program directed at euro zone government bonds.

One of its main purposes of using quantitative easing (QE) in the euro zone would be to boost inflation, which came in at an annual -0.2 percent in December—far below the “just under 2 percent” level targeted by the ECB.

However, the jury is out on whether QE will work in the euro zone, where disinflation is now the status quo—inflation fell below 2 percent at the start of 2013 and has been trending downwards ever since.

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