Brilliant Banking

ecbLast Thursday, the ECB unleashed numerous measures to boost lending and inflation in Europe. The ECB pushed rates further into negative territory, from -0.3% to -0.4%, boosted the size of their bond purchases by €20 billion/month, and will now PAY banks up to 0.4% to borrow if they lend the money! While this massive (and probably futile) use of monetary policy smacks of desperation, paying banks to lend is brilliant!

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