Allianz Research

Allianz Global Wealth Report 2024:
Surprising relief

Quantative Easing in Emerging Markets: Playing with fire?

The Covid-19 pandemic marked a turning point for ‘unconventional’ monetary policies in Emerging Markets (EMs), several of which embarked on government bond purchase programs to address market dislocations and ease monetary conditions in the short run.

 

ECB: Talking the Talk, Before Walking the Walk in December

The spreads have been closed but the ECB’s job is nowhere near done yet: Tomorrow’s policy meeting will be all about cues for the ECB’s game plan to tackle mounting deflation risks and a strong euro in the context of an uncertain economic recovery. As if the ECB did not already have enough on its plate with the unprecedented Covid-19-related growth shock, which led to the announcement of additional asset purchases to the tune of EUR1,350bn, it will now need to decide how to deal with two additional headaches to its growing list of worries.

 

European consumers: Still firmly in the woods

Given the sharp setback in consumer spending in H1 2020, which far exceeded anything seen during the Great Financial Crisis as well as the Eurozone debt crisis, without a meaningful rebound in private consumption, economic recovery prospects will remain rather dim.