10 Figure tell you everything about the ECB's QE

Night network, network nightlife Finance YORK January 23 news, European Central Bank [microblogging] President Mario Draghi did not let the market down, the European Central Bank on Thursday decided to increase the amount of monthly asset purchases of 60 billion euros, at the same time extended to sovereign debt。This means that the European Central Bank officially launched quantitative easing (QE), the new monthly purchases amounted to 50 billion euros。Asset purchase program from March 1 to start, continue until September 2016, the ECB QE add firepower to 950 billion euros, amounting to 1.14 trillion euros。  Foreign media QUARTZ produced 10 data charts tell you why the European Central Bank was forced to launch QE, QE plan which will result in impacts and how to have an effect on the euro zone economy。  First, the euro zone economic situation is very bad。  The unemployment rate has been at a very high level, November 11.5%。Figure 1 is almost no economic growth in the euro area unemployment rate。  2014 third quarter euro area GDP growth of only 0.2%。Figure 2 euro area quarterly GDP growth rate of the European Central Bank but to really promote the action of deflation。  Global prices have dropped significantly in the euro area as a whole has emerged clearly deflation。3 Eurozone CPI growth rate therefore QE is only a matter of time。  Central banks in other countries are frantically printing, large-scale expansion of the balance sheet, but the ECB has not taken decisive action。4 major central bank balance sheet growth, but that has not occurred since 2008 changed。  The ECB plans through asset purchases to expand the balance sheet 1 trillion euros。The move will push bond yields down further。5 German 10-year yields 22 January intraday euro also tumbled。  One of QE to help the euro zone economy is to let the euro, thereby enhancing the competitiveness of euro area product。After the ECB announced quantitative easing program, the euro against the dollar fell to 11-year low。6 euro against the dollar QE plan to stimulate European stock markets rise。  This means that investors believe quantitative easing can boost economic growth in Europe。7 European stock markets performance January 22 QE success of the revitalization of the economy it?  Nobody knows。QE works one way is to drive down bond yields, thus indirectly reducing the borrowing costs of enterprises。The problem now is that the euro zone bond yields already at very low levels, including those in the European debt crisis are considered higher risk。This is mainly due to the July 2012 Mario Draghi vowed to do "whatever it takes" to save the euro, so that the default risk of peripheral Eurozone government bonds disappear。8 eurozone 10-year bond yields key to look at bank。  The key ECB quantitative easing policy success or failure of the banking system。Enterprises can benefit from lower bond yields, a look at the bank。In recent years, European banks lending to non-financial corporations has been steadily declining。If European banks still reluctant to lend, it is difficult to significantly improve the economy。9 euro area banks to non-financial corporate loans year on year growth, there are some grounds for optimism。  Survey shows recent European banking industry for the first time since the financial crisis began to relax credit standards。10 European Bank Lending Survey: share of net bank lending standards tighten percentage (Shofu compilation)