Barclays: Quantitative Easing Delivers Significant Fiscal Benefits, But Don't Get Complacent

Quantitative easing and “ultra-accommodative monetary policy” have delivered significant fiscal benefits to the European Union, a Barclays report notes. But the report, titled “QE’s fiscal high will not last forever,” pointed to moral hazard concerns that a habit-forming dependency can bring about.

Quantitative easing has reduced fiscal pressures on debt-ridden governments

In a region where sovereign debt has been a concern, particularly in periphery nations, one of the most significant benefits of untraditional monetary policy can be seen can be seen in how it cools down the region’s debt problems.

“One of the most prominent features of the global financial crisis has been the large accumulation of public debt, especially...