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It’s an old economic controversy: does supply drive demand or is it the other way around? (Photo: Valentina Pop)

The ECB: An act of determination or desperation?

In yet another attempt to revive the eurozone recovery and fight low inflation, the European Central Bank (ECB) on Thursday (4 September) emptied its toolbox almost entirely.

With another rate cut, an ABS (asset-backed security) purchasing programme and a new covered-bond purchasing programme, the ECB has now reached a point at which fully-fledged quantitative easing - outright purchases of government bonds, is the only option left.

Now that the ECB has almost entirely emptied i...

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The views expressed in this opinion piece are the author’s, not those of EUobserver

Author Bio

Benjamin Fox is a seasoned reporter and editor, previously working for fellow Brussels publication Euractiv. His reporting has also been published in the Guardian, the East African, Euractiv, Private Eye and Africa Confidential, among others. He heads up the AU-EU section at EUobserver, based in Nairobi, Kenya.

It’s an old economic controversy: does supply drive demand or is it the other way around? (Photo: Valentina Pop)

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Author Bio

Benjamin Fox is a seasoned reporter and editor, previously working for fellow Brussels publication Euractiv. His reporting has also been published in the Guardian, the East African, Euractiv, Private Eye and Africa Confidential, among others. He heads up the AU-EU section at EUobserver, based in Nairobi, Kenya.

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