New campaign launches, calling on ECB's quantitative easing programme to "serve the people"
A coalition of eurozone campaigners, civil society organisations and economists is today calling on the European Central Bank (ECB) to radically change its approach to the current Quantitative Easing (QE) programme.
Brussels, Wednesday 25th November
Launching a major campaign across the continent, 'Quantitative Easing for People' brings together groups including Social Justice Ireland, Collectif Roosevelt (France), World Future Council (Germany), FairFin (Belgium), European Alternatives and Basic Income Europe. The campaign is also supported by organisations from Italy, Greece, Spain, Austria, the Netherlands. (see the full list here)
QE began in the eurozone earlier this year, the ECB is currently creating 60 billion Euros each month. The ECB is set to decide next week if it wants to increase QE even further.
Dr. Matthias Kroll from the World Future Council said: ‘So far the ECB’s QE program has proven to be ineffective in raising inflation back to its 2% target.'
‘Flooding financial markets inflates share and bond prices, which makes the rich richer, but does little to help households and business. In fact, QE is helping fuel a new financial bubble, laying the foundation for another financial crisis. The eurozone needs a more direct and efficient stimulus.’
The idea behind the campaign is that 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.
The ECB needs new tools
Eric Lonergan, macro fund manager who has written extensively on the topic said: ‘This campaign reflects the growing consensus that monetary policy isn’t working. The ECB needs new tools to combat deflation and achieve its mandate. Countries in the eurozone need to stimulate their economies without increasing public and private debt, without increasing inequality, and without creating bubbles. Cash transfers to households, or QE for People would do just that.’
‘In fact, QE for People is likely to be so effective that only a fraction of the €60 billion currently being created through QE each month would be necessary under a QE for People program.’ said Bruno Lamour, President of Collectif Roosevelt.
The campaign will focus on raising awareness of the failures of the current QE programme, building political momentum around alternative monetary policies and fostering further research.
People can signup to the campaign by visiting www.qe4people.eu