Is the madness going to stop? - QE policy
Hello fellow credit crunchers,
This blog will contain a series of interesting topics which will handle on one hand a broad range of money market related topics and on the other hand some interesting actual trade credit related news of (Belgian) enterprises.
Why will we elaborate for the biggest part on the Quantitative Easing policy and on trade credit related news? Our research paper will investigate whether the recent QE policy had any effect on the trade credit used in Belgian enterprises. If we might discover an effect we would like to tackle and elaborate on the scope and the properties of this effect.
This week our team wants to share the announcement of the ECB that it will start smoothing its QE policy in 2018! This decision will definitely have its effect on the European economy and probably have some cross-border effects, in which way will this smoothening affect our economies? Definitely some food for thought here.
We have not chosen to title this post with "the madness", because we are tremendously inspired by the madness that takes place every year in Boom, no. But because of the madness today in the money markets.
"Money is cheap" is definitely one of the most controversial sayings that one can hear since some time, if we compare the current interest rates with those at which our parents financed the homes we are living in this is some madness (1% vs 11,5%). The QE policy of Draghi is the reason why we are saying that money is cheap.
Stay tuned for some more (madness)!!
https://www.theguardian.com/business/2017/oct/26/ecb-to-halve-bond-buying-as-it-plans-to-scale-back-quantitative-easing
This blog will contain a series of interesting topics which will handle on one hand a broad range of money market related topics and on the other hand some interesting actual trade credit related news of (Belgian) enterprises.
Why will we elaborate for the biggest part on the Quantitative Easing policy and on trade credit related news? Our research paper will investigate whether the recent QE policy had any effect on the trade credit used in Belgian enterprises. If we might discover an effect we would like to tackle and elaborate on the scope and the properties of this effect.
This week our team wants to share the announcement of the ECB that it will start smoothing its QE policy in 2018! This decision will definitely have its effect on the European economy and probably have some cross-border effects, in which way will this smoothening affect our economies? Definitely some food for thought here.
We have not chosen to title this post with "the madness", because we are tremendously inspired by the madness that takes place every year in Boom, no. But because of the madness today in the money markets.
"Money is cheap" is definitely one of the most controversial sayings that one can hear since some time, if we compare the current interest rates with those at which our parents financed the homes we are living in this is some madness (1% vs 11,5%). The QE policy of Draghi is the reason why we are saying that money is cheap.
Stay tuned for some more (madness)!!
https://www.theguardian.com/business/2017/oct/26/ecb-to-halve-bond-buying-as-it-plans-to-scale-back-quantitative-easing
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