The Eurozone Is Going down the Same Stagnating Road as Japan

The European Central Bank announced a tapering of the repurchase program on September 9. One would imagine that this is a sensible idea given the recent rise in inflation in the eurozone to the highest level in a decade and the allegedly strong recovery of the economy. However, there is a big problem. The announcement is not really tapering, but simply adjusting to a lower net supply of bonds from sovereign issuers. In fact, considering the pace announced by the central bank, the ECB will continue to purchase 100 percent of all net issuance from sovereigns.

 
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Πηγή: mises.org