The ECB’s policy of printing money will not lead to wealth creation: instead, it will inevitably lead to inflation far above 6% across Europe

To combat Europe’s financial and economic crisis the European Central Bank (ECB) has pursued quantitative easing (QE). Such money-printing-policy in the name of crisis management and financial stability acts as a disincentive for banks to restructure their balance sheets and adopt healthy business practices, argues John Doukas. Ultimately, it undermines the value and purchasing power of any currency and will lead to inflation far above 6% across Europe.