ECB’s Quantitative Easing (QE) and Within the EU’s Inequality:Qualitative, not Quantitative Causal Inferences from Constructivism

Abstract

This paper investigates the united monetary policy’s and especially QE’s effects on real economies mainly after the ECB’s additional QE implementation periods since December 2015 to January 2018, which is not covered by Suzuki (2016). Author employs the qualitative causal inference methods to verify potential hypotheses. Qualitative causal inferences are useful methods given appropriate sets of potential causal hypotheses are fully specified. ECB’s stimulus of quantity channel (QE channel) and consumption and private investment channel (escaping from balance sheet recession channel) enable Europe to escape from deflation and to promote economic expansion, which is the success of ECB’s united monetary policy so far.