Draghi and Euro QE.

[smifffymoto]

I read today that the 2.3 Trillion quantative easing of Euros has stopped.I know what QE is but what have been the effects of it and will anything happen now it has stopped.
Please try and keep it simple.

[fitz1985]

The effect is as had is to devalue the currencies it has been issued in, it is in effect printing money to cause inflation and keep people buying things (because things get more expensive rather than holding off in case they become cheaper). When the crash hit there was a very real risk that people would stop buying as much stuff. This can lead to a viscous circle of companies having to discount to shift, then people think it will be cheaper later on and hold off and so on.

Now it has stopped, depending on other macroeconomic (big picture) stuff going on... The ideal they have is that slow inflation will be sustained by the markets without printing money. IE the economy is self supporting once more, a prudent move if this proven correct would be to gently begin to take the money back out of the system I think by issue bonds etc. This would signal strength to the markets and calm fears and slowly deal with the issue of excess capital.

It will have the even in coming months and years if it isn't reversed of likely increasing the cost of borrowing, and subsequently interest rates on savings.

Its been a while since economics in my degree so someone else is free to point out my errors.