Quantitative easing is no silver bullet for solving economic ills

THE ECB is under growing pressure to embark on a large scale government bond buying programme.

Recent wobbles in the financial markets along with further evidence of economic stagnation has added weight to calls for the implementation of some form of quantitative easing aimed at jump charging the eurozone economy. In mid-October, stock markets on the Continent suffered what was described as “the longest losing streak in 11 years”.

A few days ago, the ECB chairman met with Europe’s leaders in Brussels to try and chart a course. As so often in the past, the German chancellor, Angela Merkel, finds herself in pole posiiton. She will be pressed to give the go ahead to measures aimed at jump-starting the eurozone. The sharpest debate surrounds the monetary measures in the pipeline.