A scarcity of government bonds could pose problems for the ECB’s quantitative easing programme

The European Central Bank’s quantitative easing programme is scheduled to start this month. John Doukas writes that while the programme might well boost EU economies, there remain significant question marks over whether it is sufficient to generate substantial growth in struggling Eurozone countries. He also notes that a scarcity of government bonds could pose problems, and that the ECB should be prepared to pay higher prices for the purchase of government securities.