European Central Bank Unveils €1 Trillion Quantitative Easing Program

The European Central Bank announced its anticipated €1 trillion quantitative easing program Thursday.

The ECB will make monthly asset purchases of €60 billion through September 2016, and possibly beyond, in an effort to fulfill its “price stability mandate” and achieve 2 percent inflation, according to the bank’s press release.

The ECB said it "will buy bonds issued by euro area central governments, agencies and European institutions in the secondary market against central bank money, which the institutions that sold the securities can use to buy other assets and extend credit to the real economy. In both cases, this contributes to an easing of financial conditions.”

ECB President Mario Draghi indicated that “20 percent of the asset purchases would be subject to risk-sharing, suggesting the bulk of any potential losses will fall on national central banks.” Critics claim “that calls the euro zone concept of risk sharing into question and countries with already high debts could find themselves with further liabilities,” according to to a Reuters report.

In a press conference, ECB representatives said that the bank would offer further measures later.