ECB to stay dovish despite ending its QE programme
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Significance Fears of Europe's financial fragility are rising after the ECB ended its quantitative easing (QE) programme in December. The programme -- which lasted almost four years -- bought over 2.5 trillion euros (2.9 trillion dollars) in government, corporate and covered bonds, as well as asset-backed securities. Impacts GDP growth may pick up in the fourth quarter after idiosyncratic factors hit July-September, but GDP will struggle to build momentum. When the next cyclical downturn hits, fiscal policy will have to help monetary policy in supporting the economy. An ECB rate hike in 2019 would allow Central-East European central banks to hike too, curbing inflationary pressures.
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2019 ◽
Vol 53
(3)
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pp. 43
2017 ◽
Vol 25
(2)
◽
pp. 209-226
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