Unintended consequences of the ECB’s quantitative easing programme could undermine Europe’s recovery

Earlier this year, the European Central Bank began implementing a quantitative easing (QE) programme. John Doukas writes that while conventional economic thinking would suggest QE should provide short-term benefits to European economies, it may also be having unintended consequences by giving certain sectors of society, particularly those at or near retirement age, less incentive to spend. He argues that the net effect of the policy could be to undermine, rather than help, Europe’s economic recovery.