Links to slides and sources: https://www.itmtrading.com/blog/the-b...
What is the latest ECB experiment? Dropping interest rates more deeply negative, but not charging banks interest on small time deposit reserves to help with bank income declines. Restarting the government and corporate bond buying program. In addition, they removed and or lengthened time limits on negative rates, bond buying programs and central bank loans to banks, making it even cheaper and easier for banks to borrow. In other words, more of the same but on steroids, Woo Hoo!
Unfortunately, this is not likely to have the stated effect because you can create as much credit as you want, but you need borrowers and spenders to move it through the broader economy. Keep in mind that a recession reflect credit demand declines and three of Europe's biggest economies (Germany, UK and Italy) are in or near recession, it is far more likely the ECBs bazooka will be a dud.
Lynette Zang has held the position of Chief Market Analyst at ITM Trading since 2002. Ms. Zang has been in the markets on some level since 1964. Her mission is to convert financial noise into understandable language. She has been a banker, a stock broker and studied world currencies since 1987. She believes strongly that we need to be as independent as possible and at the same time, we need to come together in community in order to survive and thrive through the hyperinflation she sees in the near future.