How to Approach The Major European Central Bank Rate Announcement

March 30, 2014

Plagued by the persistent threat of deflation, the European Central Bank is considering bringing out the big guns. In interviews this week with the Wall Street Journal, central bankers from Germany and Finland said that they would be open to the possibility to more aggressive monetary policy, including a full-blown quantitative easing program like the one the U.S. Federal Reserve is in the process of winding down.

The Fed launched its first round of quantitative easing way back in 2008. Since around that time, Europe has been dealing with an ongoing debt crisis. So why are the Europeans just now talking about these measures?

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