Bridgewater Says ECB QE Will Not Do The Job

The stimulative impact of quantitative easing in the Eurozone is itself easing, a recent Bridgewater Associates strategy document observes, and European growth is slowing. The reason for the relative ineffectiveness of Europe’s QE is the subject of modeling which shows Europe and Japan have one key factor that points to why QE will be relatively ineffective and a lack of “ammunition” in the European Central Bank’s arsenal. Ultimately the answer may require correlated efforts in terms of both monetary and fiscal policy, not solely relying on the central bank to do all the heavy economic lifting, May 13 analysis from Bridgewater says.

These remarks echo comments published today by the Federal Reserve -...