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Eurozone to Print More Money

Community Veteran
Posts: 18,547
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Registered: 12-08-2007

Eurozone to Print More Money

The European Central Bank announced today that they are to inject a least €1.1trillion into the economy. Will this stimulate the economy as it is intended to do?
QE Boost
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Community Veteran
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Registered: 27-10-2012

Re: Eurozone to Print More Money

There are many economies to stimulate in the Eurozone Smiley
I miss old times
Community Veteran
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Registered: 12-08-2007

Re: Eurozone to Print More Money

It will be interesting to see how Greece will be affected. With elections on Sunday I think there may be trouble.
Community Veteran
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Re: Eurozone to Print More Money

Community Veteran
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Re: Eurozone to Print More Money

My mother-in-law has the proceed of a house sale in Euros. Back in June I told her she should convert it to sterling, but unfortunately someone who has a friend who "knows about foreign currency" said she should wait. She's lost about 10% of the sterling value thanks to this "friend".
It's been obvious that the EU would go down the Money Printing route and effectively devalue the Euro.  Perhaps the USA has been doing QE, but at the same time it has used fracking for cheap energy (less imports). Europe isn't in the same position.
Now Zen, but a +Net residue.
Community Veteran
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Re: Eurozone to Print More Money

It was only a matter of time. We had to do it and we're supposedly the most financially sound and intelligent country in the world so europe was never going to escape it. I'm just surprised it took so long.
I need a new signature... i'm bored of the old one!
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Re: Eurozone to Print More Money

it's far too late and will add to the building resentment in Germany, will probably help stop EU going into a triple dip..
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Re: Eurozone to Print More Money

I wonder how all the different countries go about dividing up the extra print run.
I know they buy bonds or something but it still makes little sense.
At least the EU is already ahead on false accounting and they have plenty of people already used to spreading out EU money.
Community Veteran
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Re: Eurozone to Print More Money

this generally is done with the aim of inflating oneself out of debt.
So this will probably make the euro even weaker (recently its tanked).
Inflation to rise, seems someone out there isnt happy about inflation.
I hate money injection, there is better ways to stimulate an economy, yet this is what gets done time and time again.
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Re: Eurozone to Print More Money

Quote from: chrcoluk
I hate money injection, there is better ways to stimulate an economy, yet this is what gets done time and time again.

Central banks have two ways of stimulating economies - lower rates or QE.
Community Veteran
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Registered: 20-10-2012

Re: Eurozone to Print More Money

£ has jumped to €1.32, but dropped below $1.50 on the Reuters site!
I'm selling some land in France and need to see £ & € on parity when I bring the loot home!  Roll eyes
I'll just have to leave it there for a while!
Geoff,
York.
Community Veteran
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Registered: 12-08-2007

Re: Eurozone to Print More Money

At least holidaymakers will like it , for the time being Wink
Community Veteran
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Re: Eurozone to Print More Money

yeah it will tank,I am changing lots of my invoices from euros to GBP now as I have been losing money from this.
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Re: Eurozone to Print More Money

Quote from: AndyH

Central banks have two ways of stimulating economies - lower rates or QE.

Denmark has just cut it's Central Bank interest rate to (negative) -0.35%
We live in interesting times.
Community Veteran
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Registered: 27-10-2012

Re: Eurozone to Print More Money

Same as the Swiss National Bank. The overnight repo rate there (the rate commercial banks borrow at to meet any shortfall) got crushed yesterday to -1.52%.