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.