At a conference organised by the Bank of Japan’s Institute for Monetary and Economic Studies, Isabel Schnabel, member of the Executive Board of the European Central Bank (ECB), discussed the use of asset purchases in implementing monetary policy.
Isabel Schnabel took the view that quantitative easing (QE) increases the risk of losses for central banks as well as risks to financial stability, that it can exacerbate inequality and that prolonged periods of QE can affect the market’s...