If there are actually any QE supporters on this board could they please tell me how even if QE 'works', how would this ACTUALLY benefit,say, the Greek or Spanish economy in any way that actually funnels down to the real economy?
QE is:The central bank plans to buy 60 billion euros a month of assets - mostly sovereign bonds - until at least September next year. By then more than 1 trillion euros will have been created.With the promise that more could be bought, and for longer, if it has to. Greece, which remain under EU/IMF bailout programmes, will be eligible but subject to stricter conditions.
"Some additional eligibility criteria will be applied in the case of countries under an EU/IMF adjustment programme," ECB president Draghi said. 20% of the asset purchases would be subject to risk-sharing, suggesting the bulk of any potential losses will fall on national central banks. I may be not good for Greece.
Most euro zone government bond yields will fall to ultra-low levels and the rate of the euro to dollar pair will dropp sharply . Lower borrowing costs and a weaker currency could help to boost Greek growth but there is a question about how much downside there is for either.