Why is the European Central Bank not actively involved in bailouts via quantitative easing like the Fed?
January 17th, 2012 | 
Author: Question by Jay: Why is the European Central Bank not actively involved in bailouts via quantitative easing like the Fed?
I was hearing about how the European countries like Greece and Portugal, now Italy were forced to ask for bailout when their “interest rates” on debt hit a high something like 5-6%? If the European Central Bank lowered their interest rates wouldn’t that cause the banks to lower their interest rates and thereby prevent a bailout? I understand how our Federal Reserve Central Bank controls the U.S money flow I do not know as much about Europe.
Best answer:
Answer by simplicitus
Because it chooses not to.
http://www.reuters.com/article/2011/11/11/us-eurozone-ecb-knot-f-idUSTRE7AA4A220111111
http://www.nytimes.com/2011/11/09/opinion/euro-crisiss-enabler-the-central-bank.html
http://delong.typepad.com/sdj/2011/10/monetary-constitution-of-the-eurozone-blogging-a-history-lesson-for-the-grandees-of-the-ecb.html
http://www.nytimes.com/2011/09/12/opinion/an-impeccable-disaster.html
http://krugman.blogs.nytimes.com/2011/08/07/a-self-fulfilling-euro-crisis-wonkish/
Know better? Leave your own answer in the comments!
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