Borrowing from the playbook of their U.S. and Japanese counterparts, European central bankers Thursday embarked on a highly anticipated plan to buy hundreds of billions of dollars’ worth of government bonds to try to revive growth by pumping cash into the financial system.
European Central Bank President Mario Draghi announced an open-ended pledge to buy 60 billion euros ($70 billion) worth of private and public bonds every month in a program that could amount to as much as a trillion euros.
The long-awaited—and, many say, long-overdue—program will start in March and last through September 2016, Draghi told reporters. The hope is that the bond-buying spree—known as quantitative easing—will help reverse a worrisome drop in prices that has recently spread throughout the euro zone.
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