ECB monetary policy and quantitative easing: 1st part
In these last days is becoming increasingly topical the debate about the different powers in terms of monetary policy between the ECB on the one hand and the Bank of England and the Fed (as well as the Bank of Japan) on the other. The ECB is being asked by many parties to step up purchases of government bonds of countries "not virtuous" in order to support prices and reducing rates. The Bank of England and the Fed can use instead the tool of "quantitative easing", printing money to buy securities. I wonder, who is right in the debate? Like every aspect of life, both systems have their pros and their cons. It should then analyze the different strategies used. We start then, in this first part, with the ECB's monetary policy. The European Central Bank, according to the Treaty establishing the European Community (Art. 105, par.1) has one goal in mind and clearly preeminent: the pursuit of price stability. So, the german obsession for the con...