While most of the advanced economies are expected to experience only a subdued recovery, weighed down by balance-sheet problems, Asia is expected to grow solidly, with domestic demand in the region playing a greater role than in the past.
If we go into the market and purchase bonds for cash, the sellers can use that money to purchase other assets, including those issued by smaller firms and in other countries. The ECB’s purchases will be concentrated on just a limited number of bonds, but all bonds will benefit from the narrowing of spreads. Second, markets are never static.