Home › T19 Categories › * Culture-Watch › (Telegraph) Top German body calls for QE blitz to avert deflation trap in Europe

(Telegraph) Top German body calls for QE blitz to avert deflation trap in Europe

Posted on March 10, 2014 by Kendall Harmon

A leading German institute has called for full-blown quantitative easing by the European Central Bank (ECB) to head off a deflation spiral, marking a radical shift in thinking among the German policy elites.

Marcel Fratzscher, head of the German Institute for Economic Research (DIW) in Berlin, demanded €60bn (£50bn) of bond purchases each month to halt the contraction of credit and avert a Japanese-style trap.

“It is high time for the ECB to act. Otherwise Europe risks falling into a dangerous downward spiral of sliding prices and declining demand”, he wrote in Die Welt.

Read it all.

print

Posted in * Culture-Watch, * Economics, Politics, * International News & Commentary, --European Sovereign Debt Crisis of 2010, Consumer/consumer spending, Corporations/Corporate Life, Economy, Ethics / Moral Theology, Euro, Europe, European Central Bank, Globalization, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, Theology