The policy effect and prospect of the European Central Bank's quantitative easing
Abstract：Since the second half of 2014, the euro zone inflation continued to decline and inflation expectation has been deteriorating. The targeted long-Term refinancing operation and private sector asset purchase program launched by European Central Bank have little effect. In January 2015, as the Federal Reserve gradually reduce the purchase of bond, considering the interest rate hike cycle, the European version of quantitative easing officially released. After 18 months, judging from economic and financial performance of the euro zone, the credit growth has been improved, but far lower than the pre-crisis level. The downside risks to economic growth still exist. With the upgrade of the quantitative easing, the market has been losing faith in ECB's efforts to prop up the inflation, which endangers central Bank's policy credibility.
Key words: ECB;quantitative easing,;asset purchase program