While bolder than expected, the European Central Bank's (ECB) quantitative easing (QE) package is unlikely to kick-start a recovery in the eurozone. Interventions by central banks need to be speedy, strong and dramatic if they are to be effective. The ECB has dragged its feet for six years over QE, and coming this late in the day the impact will be far less pronounced.
There are reservations anyway about the effectiveness of QE, even when applied better as in the UK and the US. It bails out debtors and raises asset prices but does not automatically lead to increased consumption and investment.
