K2: Making sense of Euro QE. Annual inflation in Europe recently hit the lowest levels since 2009 (see chart below via Morgan Stanley). This has European central bankers and politicians working overtime to avoid deflation. Currently on a visit from Edinburgh, Nick Griffin from K2 Asset Management spoke with Livewire and shared his views on how effective this recently announced stimulus package is likely to be. Monetary policy can only do so much - we have seen that in the US. Even though we have had quantitative easing for a long time and there has been an improvement in economic growth, ultimately it is still sub par. In Japan we have had it for a year now and we are still bouncing around very low growth levels. In Europe it is now just getting underway... It has to be done alongside fiscal policy and also alongside microeconomic reform. In the full interview Griffin shares his views on political posturing in the region and where he sees investing opportunities. Watch the interview:
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