Japan’s economy is recovering from last year’s tragic earthquake and tsunami, and it continues to struggle with deflation and persistent weak demand. And in the emerging market economies, the rapid snap-back from the global financial crisis has given way to slower growth in the face of weak export demand from the advanced economies.
Several economists question the effectiveness of QE in Europe: banks are still not in good shape; the euro area now has lower interest rates than the United Kingdom and United States at the time; and Europeans have fewer financial assets. How do you answer that? QE comes in addition to all the other measures of monetary policy accommodation.