ECB's QE could have unintended consequences
Run on euro, rise in bond yields and currency turmoil in Asia and elsewhere are some possible scenarios
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THE European Central Bank's aggressive negative interest rate 1.1 trillion euros (S$1.6 trillion) quantitative easing (QE) policy is causing dislocation in European and global markets.
Indeed, the law of unintended consequences could stymie the ECB's overall plan to boost the flagging Eurozone economies. The stated plan of ECB president Mario Draghi and fellow members of the central bank's board is aimed at boosting European bank lending while the devaluation of the euro will raise exports and imported inflation.
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