ECB keeps increasing the money supply

//ECB keeps increasing the money supply

ECB keeps increasing the money supply


BBC: ECB extends bond-buying scheme but at slower pace

Article published: Dec 8, 2016 – out of date: no longer suitable for your IB Economics commentary

IB Economics syllabus: Macroeconomics (Monetary policy)

At times of low economic growth and very low inflation, Centrtal Banks use expansionary monetary policies to get things going. This includes decreasing interest rates and increasing the money supply. While interest rates are already very low in the Eurozone (although they might fall further in the future), this time the European Central Bank (ECB) decided to continue increasing the money supply by continuing buying bonds until the end of 2017.

For the official statement, CLICK HERE.

Source of image: Getty images

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By | 2018-10-25T04:14:01+00:00 December 14th, 2016|Macro|Comments Off on ECB keeps increasing the money supply

About the Author:

My name is Daniel Szekely and I work as an IB Economics tutor, examiner and teacher. Having earned an MA degree in Economics at the University of Aberdeen, I started my career as a financial analyst at Morgan Stanley, one of the largest investment banks of the world. Yet, despite the promising career prospects of the banking industry, I decided to make a larger social impact by becoming a teacher. Currently, I teach IB Economics at SEK Budapest International School and have been an examiner for over 8 years. I started EconDaddy as a simple blog to share great articles with my students and others taking IB Economics around the world to use for their commentaries. Being a practicing IB Economics tutor, I have first hand insight into the most common mistakes of students, so the EconDaddy blog now also provides exam and commentary writing tips.

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