Tober, Silke - Institut für Makroökonomie und Konjunkturforschung - 2016
The ECB's expansionary monetary policy has positive effects on the euro area economy. Interest rates have declined … further, bank lending is improving, and the euro is weaker. However, inflation remains much too low and aggregate demand too … to add to the effects of monetary policy.The euro area, moreover, suffers a key problem that not only impedes monetary …