- Europe in recession so European Central Bank (ECB) needs to do something to boost growth by injecting liquidity into system.
- Available tools are:  Quantitative Easing (purchasing bonds of longer maturity than short-term govt. bonds)  Cocktail of other monetary policy tools like buying short-term bonds, asset-backed securities and covered bonds, and auctioning cheap cash to eurozone banks.
- Thusfar German Bundesbank has been against  but  doesn't seem to be working so well. Consensus is that chances of  occurring are increasing, especially as EU growth slows and US growth picks up.