The European Central Bank (ECB) announced a 750 billion euro (USD $820 billion) stimulus package intended to stabilize markets that are reeling in response to the global coronavirus pandemic. The ECB has coined the package the Pandemic Emergency Purchase Programme, and intends to use the program funds to purchase government and private sector bonds through the end of 2020. This marks the second stimulus package the ECB has announced in as many weeks.
While a measure like the one announced is extremely rare, ECB President Christine Lagarde stated that “extraordinary times require extraordinary action.” It came after a meeting with the bank’s Governing Council where members discussed concerns over signs that bond investors were losing faith in Italy’s solvency.
While some economists have called the move a “game changer” for the European economy, it remains to be seen whether the stimulus packages thus far announced will be sufficient to offset the economic toll that the outbreak has had, and likely will continue to have, on the global economy.
