Outgoing ECB member Bini Smaghi sees role for European QE

A top European Central Bank policymaker has called for “quantitative easing” to be used to boost the eurozone economy if deflation risks emerge across the 17-country region.

The comments by Lorenzo Bini Smaghi, ECB executive board member, are the strongest indication yet that the central bank would expand its policy tools to prevent a possible disastrous economic slump in continental Europe.

In an interview with the Financial Times, Mr Bini Smaghi also hinted at frustration over the UK’s reluctance to join efforts to strengthen the eurozone. The euro’s success was in the City of London’s interest, he said. “The European Union, and ECB, would certainly contribute to help Britain if London was in difficulty. I would thus expect a reciprocal attitude.”

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Mr Bini Smaghi said: “I do not understand the quasi-religious discussions about quantitative easing.”

http://www.ft.com/intl/cms/s/0/6ce17dac-2ca5-11e1-8cca-00144feabdc0.html#axzz1gtXwvWIU

 

I thought it was funny that they can see no deflation in Europe!

 

What? The ECB has problems helping its own members but would certainly contribute to help Britain. What a joke