European Central Bank (ECB) President, Mario Draghi, confirmed the ECB is willing to purchase government debt in a process known as quantitative easing in an attempt to stop the 18 member Eurozone falling into a deflationary spiral.
ECB official, Yves Mersch, went one step further can confirmed the ECB would be prepared to buy a variety of assets including gold, shares and ETF’s.
The ECB has already implemented a number of measures to stimulate the economy and raise inflation. With inflation well below the banks 2% target, it now appears these measures have failed.
Germany the Eurozone’s largest member is against such measures as they fear ultra-loose monetary policy could lead to high inflation. In the 1920’s Germany experienced hyperinflation which destroyed the economy.