Thomas Fazi

QE Has Failed in the Eurozone

Eight months have passed since the ECB started its own quantitative easing (QE) program, and almost everyone in Europe seems to agree with Mario Draghi that ‘QE has been a success’. But is such enthusiasm warranted? Let’s take a look at the data.

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  • endorsed 2015-11-21 12:17:12 +0100
  • Statement of Support for Quantitative Easing for People

    We invite all economists to endorse the campaign by signing up to the declaration below.

    1. Conventional QE does not work

    Since it started in March, the eurozone QE program has not helped to rescue the eurozone economies from stagnation.

    2. Conventional QE is risky and harmful

    Flooding financial markets inflates share and bond prices, which makes the rich richer, but does little to help ordinary people and businesses. In fact, QE is helping fuel a new financial bubble, laying the foundation for another financial crisis.

    3. A more direct approach is needed

    Countries in the eurozone need to stimulate their economies without increasing public and private debt, without increasing inequality, and without creating bubbles.

    4. QE for People is possible

    Instead of flooding financial markets, money created through QE should be spent into the real economy, on essential public investment such as green infrastructure, affordable housing and/or distributed as a citizens’ dividend to all residents.

    5. QE for People is urgently needed

    Given the challenges facing the eurozone, we urge economists, civil society organisations, and people from across the eurozone to join us in calling on the ECB to implement QE for People as soon as possible.