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The size of the program is at the upper end of the range that had been rumored (€50 billion per month, for up to 24 months). The total involved is the maximum but the rate of growth is faster (21 months vs. 24).
The structure of the ECB purchase plan was not revealed, but it will definitely include government bonds. What other types of securities may be included were not disclosed. In the final (so far) and largest QE in the U.S. involved similar amounts of government securities and MBS (mortgage backed securities).
As with all QE programs to date, this will put money into the financial system. In general that results in asset inflation and the ECB objective of 2% inflation applies to consumer prices. This somehow seems like trying to fatten hogs by feeding the cows. But that is what these genius "farmers" seem to believe in.
Drahi said that a large majority of the ECB directors approved the new program but it was not unanimous. Sadly Econintersect does not think those objecting were of the mindset of hog farmers but were actually thinking of not feeding any of the animals.
There is more about the euro below.
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