Monetary policy in the EU

Here is another possible IA topic. The European Central Bank (ECB) is to extend its Quantitative Easing (QE) programme by nine months, but won't buy as many bonds each month.

You will recall that QE is like printing money to expand the money supply. The ECB buys bonds from the public adding to their cash holdings. This increases liquidity in the market and forces down yields on all financial assets. The hope is that this encourages households and firms to spend money (boost AD).

The question is, will it work? The phrase 'pushing on a piece of string' is often used to suggest that under current circumstances it will have little effect. But can it do any harm?

Notice that the Euro depreciated. This may help make Euro Area exports become more competitive if that situation persists.

The BBC covers the story here 

This story is about monetary policy, but 'unconventional monetary policy'. It is a good topic for an IA. Again you may want to find other sources where the article leaves you more to say.