The European Central Bank has begun using quantitative easing tools to try to alleviate the renewed crisis in the eurozone.
It has already begun to buy specific French bonds with the objective of enlarging its balance sheet which in turn should pump up demand in the euro area.
The technique is one of three which the ECB plans to deploy to stimulate the economy. There will also be an asset-backed securities purchase programme, and a series of fixed-rate loans to banks.
While the ECB has not referred to its actions as quantitative easing, a number of analysts believe the measures amount to a shift to it.
The eurozone economic recovery has been challenged by a fall in annual inflation to 0.3% in the year to September against the ECB’s target of just below 2%.
Analysts believe there is a real threat that the eurozone will crash into a triple-dip recession very soon.