On Thursday the European Central Bank is likely to announce a bond-buying binge that could reach €50 billion ($58 billion) a month, yet many bond yields in Europe are already negative. Buying low-yielding bonds is a dead end for growth. The Bank of Japan has already bought bonds worth more than 50% of its gross domestic product with no growth impact. And ECB bond-buying will be a major new political negative if it gives European governments a further excuse to avoid economic reforms.
Central bankers should be forcefully urging their governments to pursue practical growth-oriented solutions that encourage private investment and hiring. Instead, they've allowed the focus to be on them and their decisions to prolong quantitative easing—even though QE hasn't worked.
Central-bank liabilities have grown by an extraordinary $7 trillion since the 2008 crisis, yet many parts of the world are in or near recession, including Japan, Latin America, Eastern Europe and most of the eurozone. http://www.wsj.com/articles/david-malpass-the-worlds-monetary-dead-end-1421885831