The head of the European Central Bank underlined on Thursday the bank's readiness to extend money printing
, warning that a key measure of economic health — price inflation — was flagging.
Raghuram Rajan said that low borrowing costs and money printing
were a threat to financial stability.
While a 150 point rise in the fed funds rate is possible, the ECB and the Bankof Japan battle deflation risks via money printing
(sovereign bond purchases).
For now though, the e1/41 trillion-plus money printing
scheme to buy chiefly government bonds is underpinning confidence.
The Governor said the Bank could expand its PS375bn money printing
policy or cut its Bank rate further from its current level of 0.
The Governor said the Bank could decide to expand its PS375 billion money printing
policy, known as quantitative easing, or cut its Bank rate further towards zero from its current level of 0.
The partnership will enable the group to support the expansion of its paper money printing
worldwide with the expertize of Dar As Sikkah, Bank Al Maghrib's printing unit, with is equipped with modern printing technology, it said.
According to one of its senior officials, the Bank of England s money printing
experiment boosted the economy by about Au65 billion.
While the Bank of Japan and the European Central Bank (ECB) could pump even more cash into global markets with pending bond-buying plans, the US Federal Reserve began this year to slow its money printing
, causing headaches for policymakers like Rajan who saw emerging currencies tumble when the Federal reserve first indicated bond purchases would be tapered.
They probably think that Jaitely might get them some money printing
machine to bail them out", he remarked.
With monetization, money printing
depends on the fiscal budget, and not on the instruments and decisions of monetary policy.
The most surprising thing about the whole money printing
exercise is that there doesn't seem to be any evidence of inflation going up significantly, which is what normally happens when you increase the money supply.