Monetary easing by the ECB [What Think Tanks are thinking]

The European Central Bank has been easing its monetary policy to counter deflationary forces in the euro-zone economy and to reinforce its fragile growth. On 10 March, the ECB announced another stimulus package, cutting interest rates, expanding its asset purchase programme in size and scope, and introducing measures to make it more attractive for banks to lend. According to many analysts, the ECB's 'unorthodox' actions, which follow the footsteps of the US Federal Reserve and the Bank of Japan, have helped to thwart deflation and to boost corporate activity. But critics say the ECB is going too far in its monetary stimulus and that its negative-rate policy could be harmful for some banks. This note offers a selection of recent studies, reports and commentaries by some of the major international think tanks and research institutes on ECB policy. More studies on the subject can be found in a previous edition of 'What Think Tanks are thinking'.