The ECB’s easy money is making Europe’s economic crisis worse


Low interest rates are just a way of temporarily postponing problems. Sustainable growth is achieved from saving, investing, labour and entrepreneurship. This opinion piece on CapX why the ECB's ultra-easy monetary policy is making Europe's economic crisis worse.

This so-called ‘loss of demand’ is not due to people having suddenly and spontaneously ceased to spend money, but instead stems from our having stimulated our economy for years on end with interest rates that are far too low, in the Eurozone as well as in the United States. Does the solution of our debt problem equal its cause, i.e. continuously lowered interest rates? Highly unlikely.