Onlookers could be excused for thinking that Christmas had come again to the euro zone this month. On January 22nd the European Central Bank (ECB) said it was ready to buy over €1 trillion ($11 trillion) of sovereign and asset-backed bonds between March 2015 and September 2016. Growth, jobs and an end to the spectre of deflation were euphorically invoked by politicians, businessmen and journalists. The immediate result was to grease the skids under the sliding euro, worth $1.13 at mid-week. It is now down by 19% against the dollar since May 2014, and by 10% against its trading partners' currencies. Most think it has further to fall.
展开▼
