Since March 1, 2015, the European Central Bank (ECB) has purchased €400 billion worth of assets so far, and the amount could reach over €1000 billion by fall 2016. The ECB has repeated its bond purchase program, which analysts have labelled a quantitative easing (QE) like the Fed’s, cannot create sustainable economic growth by itself as it requires structural reforms – “austerity” – on behalf of the euro area governments.
The ECB’s QE has been “a success” so far, ECB Executive Board Member Peter Praet told Neue Zürcher Zeitung. Although “we are far from that (2% inflation) objective right now, (…) we have not seen a reason to doubt that the program will work,” ECB Vice-President Vitor Constancio told Thomson Reuters. “Unconventional measures have to be of a temporary nature,” and the ECB’s “purchase program is already bearing fruit,” ECB Executive Board Member Benoît Cœuré told Börsen-Zeitung. Summing up, the ECB’s QE is temporary, successful and working.