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Is the ECB's Policy of Low Interest Rates Correct?
Europa Briefing: Low Interest Rates

 

In the publication series “Europa briefing” our colleagues from “Repair and Prepare: Strengthen the Euro“, a joint project between the Bertelsmann Stiftung and the Jacques Delors Institut – Berlin, cover key topics of European politics and present possible scenarios. What is the problem? What might happen next? And what can politics do now? Each week, we will present one of these briefings for you on this blog. Alternatively, you can click here to find all the Europa briefings on the website of the project. The Europa briefings were published first in November 2017

 

This Week’s Briefing: Low Interest Rates

 

Since 2013, inflation in the euro area has been too low. In order to revive the economy and bring inflation back to target, the European Central Bank has implemented a low interest-rate policy which includes a bond-buying programme known as quantitative easing or QE. The ECB’s measures, including historically ultra-low interest rates, also bear risks. For example, some observers fear the formation of a bubble in real estate and stock markets or complain about one-sided capital gains for wealthy households.

 

To get a better understanding of how it all works, simply click on the download window above to read the full brief.

 

„The Europa briefing series is published as part of “Repair and Prepare: Strengthen the euro”. For this project, the Bertelsmann Stiftung has joined forces with the Jacques Delors Institut – Berlin to provide a roadmap for a stronger Economic and Monetary Union. You can find all briefings and further publications on the future of the Eurozone on the website of the project www.strengthentheeuro.eu.

 

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