Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

75. To ask the Minister for Finance the benefits to Ireland that would arise from a programme of quantitative easing by the European Central Bank; and if he will make a statement on the matter. [47684/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In general, a programme of quantitative easing (QE) would be expected to lower borrowing costs and increase the supply of credit to the real economy. In this way, real economic activity in the euro area would be expected to increase and inflation in the euro area as a whole would move back towards target.

The Irish economy would therefore benefit from both the reduction in borrowing costs and the improvement in activity in key export markets. In addition, QE would probably be associated with a depreciation of the euro, which would benefit exports to outside the euro area.