Not Scott Sumner

In its statement, the E.C.B. said that the liquidity that the bond purchases will pump into the European financial system will be “sterilized,” or offset with other monetary operations to drain liquidity from the system. In doing so, the bank seemed to be trying to answer criticism that buying bonds is the same as printing money and could lead to inflation.

Here is more detail.  Kid Dynamite has a skeptical take on the new plan.


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