The number we expected for the stimulus package to be announced by the European Central Bank (ECB) last tonight after its monthly monetary policy meeting was expected a large one. It was.
It’s a bond buying package of 60 billion euro per month. That’s about $US68 billion (or around $84 billion Australian).
According to World Bank data, Australia’s GDP is valued in US dollars at $1.560 trillion.
And as the European economic stimulus package goes for 24 months, that’s over $2 trillion.
And that means a good chunk more than the annual value of Australia’s GDP is being thrown at getting the economy moving in Europe. All to dig Europe’s inflation figures, which have been falling for years now, out of negative territory.
The ECB is wary about the threats of deflation and economic activity in the euro bloc generally sits somewhere between poor and non-existent. Unemployment is still extremely high at 11.5%.