Why is Germany sceptical of QE?

  • Merkel believes QE eases fiscal pressure on spendthrift member states (i.e. no need to be vigilant on Fiscal Policy (budget) because Monetary Policy (QE) available).
  • Also believes it will ease pressure on same member countries to embark on tough economic reforms.
  • Believes it is "back-door fiscal union" (i.e. countries with weak budgets get helped by those with strong ones).
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