Stacy Kim J.D. Candidate, Columbia Law School, 2017 “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.”[1] —Mario Draghi, President of the European Central Bank Quantitative Easing (QE) is one method that central banks may use to simulate the economy, especially when other monetary policies have been ineffective. A central bank can “create” new money by buying up bonds and other securities on the market. This increases the prices of government bonds, effectively decreasing their effective yield and lowering interest rates. Lower interest rates, combined with […]