7. European QE
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Transcript of 7. European QE
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Low level of Ination
Cheaper Crude oil in 2014~2015further decline in ination
-0.2 ination!deation" !#$% &e2014"
re'ult( purcha'ed dela)ed% le''de*and% le'' +i,. epan'ion=>rece''ion
h) /#
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Quant.
Tool
Infation
ghtTight/Dear
Defa
gEasy/Cp
C%L
Increa'e &ecre
33 ell u
onetar) 6olic)
ut alrea
9eed for
+ac:up
olution
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#C Chair*anario &ra;hi
I will purcha'e ever)*onth(<10+( private +ond'<50+( tate +ond'!atin; of - or
<0 +illion *ontarch"
8ill ep 201C6I ?"
< 1.1 trillion
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Aapan% $7% #n;land earlier andnow /# #uro,one ond purcha'e!2015% arch"
Increa'ed *one) 'uppl)
Cheaper loan product'( *ore car'and ho*e' 'old
#uro ;et' wea:er than B( #uropean#port ?
&e*and ?( &eation decre'e' andination increa'e'.
#
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ond purcha'e ?
ond price ?( ond )ield D
EE0=10 => E100=E
8o earn 'a*e return% )ouFve topurcha'e *ore Guantit) of de+t.
6en'ion in'urance co'. 'ell-oH -
ec% focu' on private +ond'=>co*panie' ;et new capital nance
u'ine'' epan'ion% @o+'% &6etter !'a)' 8he-#cono*i't"
#
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1. er*an' donFt li:e it(printin; *ore *one) =>h)perination a' in 6re-2
#
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Good or India
ore forei;ncapital inco*in;
ea:er euro =>cheaper #uropean
i*port'ore de*and in#$=> eport +oo't
tron;er upee=>7;riculture% tetilephar*a eport' widecline
ore *one)( Inat
Jtaperin;K => 'udwea:enin; of upe!201( 50=>E"
Mot *one)
Bad or Ind
#C( /uantitative #a'in; ond 6ur
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*echanical ter*= Continuou' reduction owidth.
hen #C 8aperin; 'tart'
E5
N5
5
55
Billion Euros
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7
1. 8aper O hint that #$ recoverin;
2. PII' pull out *one) fro* Indian*ar:et =JM38 one)K.
. upee ;et' wea:er co*pared to*a@or currencie'
4. hile ;ood for eport' +ut +ad fori*port'
5. a@an( 1't worldF' low-intere't ratepolicie' are unlea'hin; nancialtur*oil on e*er;in;-*ar:etecono*ie'
#C
E5
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reece 7nti-7u'terit
ea'ure'
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pr
1. #ce''ive pu+lic welfare
2. Lo'' *a:in; 6$' not 'hut downto plea'e the la+our union'
. overn*ent +orrowed fro*#uropean +an:'
4. a'' ta eva'ion
5. u+pri*e cri'i'=> eport' down%revenue down
. $na+le to repa) loan'=>Joverei;n de+t cri'i'K
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1. #C will not +u) reece-+ond' for 1't *onth' of2015
2. QourF' are @un: +ond'
. 6ro*i'e' not lled for even+ailout *one)
4. 9eed reece to followJ7u'terit)K
he
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1. 'cal decit D
2. elfare 'che*e' D
. hut down privati,e 6$'.
4. 8a rate' ?
5. ive pro;re'' on previou' +ailout*one) !earlier al'o Jpled;edKrefor*'."
. ree: Lefti't part) J)ri,aK% leader7lei' 8'ipra'( J7nti-au'terit)K
N. reece a) wal: out of #uro,one!&rach*a currenc)"
7u
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1. #uro => &rach*a
2. ItFll +e ;reatl) wea: than otherforei;n currenc)
. #port'R. ?
4. I*port epen'ive% heav) ination
5. +ut +oo't do*e'tic production for
Jelf-relianceK Sa) +eTU. Mow will #$ power' recover loan
*one)
I
#u
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1. Include our +ond' in /#pro;ra*
2. rite oH our previou' de+t.!no *ore intere't prinpal re-pa)*ent"
. ive additional JailoutK*one)=> pu+lic 'pendin;=> create @o+' => de*and+oo't => &6 i*prove'.
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