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(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.

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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