Generande självklart när man väl har läst det, eller hur Draghi?
Draghi would like his trillion euros to go to Italian factories to re-equip themselves, to Greek tourist resorts to smarten themselves up,
and to German consumers to spend more on that Italian-made stuff and those Greek holidays.
and to German consumers to spend more on that Italian-made stuff and those Greek holidays.
But banks won’t want to lend to Italian or Greek companies just because they have a lot more money on their balance sheet.
So if a trillion euros get printed in Frankfurt, a lot of it will wash its way across the English Channel.
Matthew Lynn, Telegaph 19 Jan 2015
Economists will no doubt be debating the effectiveness of QE for a couple of generations at least.
Yet one thing we know for sure is that when a major central bank prints money, it floods the rest of the world.
When Japan started, it fuelled asset booms in the US and Europe. When the Fed and the Bank of England launched QE, much of the money poured into the emerging markets.
In a world where capital is mobile, and there are no controls on its movement, that is what you would expect.
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