Lowering inflation through loose monetary policy?

Although the ECB's bond purchase programme has been designed to increase inflation since March of this year, a reduction in inflation was observed in September. Prices fell by 0.1 percent.

The monetary transmission belt of the VWL textbooks has been cut. The commercial banks do not pass on the additional liquidity made possible by the central banks to companies and households, but channel the additional liquidity into the real estate and stock markets.

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