FRANKFURT, April 4 The European Central Bank has
modelled the economic effects of buying 1 trillion euros ($1.37
trillion) of securities as part of a quantitative easing (QE)
programme, a German newspaper reported late on Friday.
ECB President Mario Draghi said on Thursday that there was
unanimity on the Governing Council for the central bank to
consider printing money to boost the euro zone economy if
inflation stayed very low for a long time.
The Frankfurter Allgemeine Zeitung said that the ECB had
estimated that buying 1 trillion euros of assets over a year
would add 0.2 or 0.8 percentage points to inflation, depending
on the economic models used.
"The question would be whether the private debt market in
Europe is big enough for QE," the newspaper quoted someone whom
it described as a central bank insider as saying.
The euro fell to its lowest level against the dollar
since Feb. 27.
The newspaper also said that an unnamed senior central
banker was extremely concerned about possible market distortions
that could result from such an intervention, and feared such
purchases could create a bubble in the corporate bond market.
The ECB was not immediately available for comment.
($1 = 0.7291 Euros)
(Reporting by David Milliken and Eva Taylor)