The IMF Urges the EU to Conduct MOAR QE, Like Animals, to Spur Inflation

Are these people fucking insane? Can’t they see QE has caused negative rates and negative rates are, by definition, deflationary?

All we hear are money changing schemes to spur inflation, but never a single fiscal idea on how to stoke growth. Do you know why? Because we’re living through the Dark Ages of monetary policy, led by goblins.

“Given the very weak outlook for inflation, the ECB should stand ready to ease further if inflation remains below its anticipated adjustment path,” IMF staff said Friday in an Article IV report on the euro area. “Dis-inflationary pressures remain strong with 11 countries reporting negative inflation in May” and “with second-round effects weighing on core inflation.”

Under the guidance of the ECB, central banks in the euro area are currently spending 80 billion euros ($89 billion) a month, the vast majority on sovereign bonds, to drive up an inflation rate that hasn’t reached the institution’s goal of just under 2 percent for more than three years. Officials currently predict consumer-price growth will accelerate to 1.6 percent in 2018 from 0.2 percent this year.

“Downside risks have grown,” the IMF said. “External demand could weaken, while political risks have risen significantly, particularly related” to the situation in the U.K.

All European markets have been shattered to pieces during QE. More of the same is a recipe for disaster.