Tom Fleming (Kerry South, Independent)
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213. To ask the Minister for Finance the benefits of the quantitative easing programme to economic growth; and if he will make a statement on the matter. [30277/15]

Michael Noonan (Limerick City, Fine Gael)
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Under the European Central Bank's Expanded Asset Purchase Programme (EAPP), the eurosystem (comprising the ECB and the national central banks of the euro area) is to purchase €60 billion of public and private assets per month until September 2016 or until there is an improvement in inflation to levels consistent with price stability.  Purchases of sovereign debt began on 9 March 2015.

The benefits of this quantitative easing:

- It should help reverse the decline in inflationary expectations and ultimately should lead to upward pressure on inflation.  By reducing the likelihood of 'deflation', this should help support consumer spending and investment in the euro area.

- The easing in the stance of monetary policy should also lead to improved financing conditions for households and firmsthus supporting investment and hence job creation.

- There is also the confidence channel: the programme will ultimately help restore confidence in the euro area economy and provide reassurance that policymakers are getting 'ahead of the curve'.

- Importantly, monetary policy also works through the exchange rate channeleverything else being equal, increasing the money supply leads to a depreciation of the exchange rate, thereby improving competitiveness for those firms exporting to outside the euro area.

While it is still early, the indications are that quantitative easing is resulting in an improved outlook for inflation in the euro area.