Quantitative Easing carried out by the US Fed, the Bank of England and the Bank of Japan: What are the key policy messages relevant for the euro area that can be drawn from these experiences?

In-Depth Analysis prepared for the Monetary Dialogue of the European Parliament

The ECB has launched an Expanded Asset Purchasing Programme (EAPP) similar

to recent Quantitative Easing programmes launched by the Federal Reserve, the

Bank of England, and the Bank of Japan. While theory suggests that Quantitative

Easing can stimulate economic growth and spur inflation via several transmission

channels, the empirical evidence is ambiguous and does not support strong

stimulating effects, in particular for the current situation in the euro area. In

addition, there are various risks and unintended consequences that may

materialize in the medium or long run.

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