BSC_Macro Views_ ECB and the EUR-1.1-trillion QE

For what reasons Eurozone need to use non-traditional monetary measures though in fact, the use of QE is still a controversial issue? Previously, it is notable that ECB has not used any quantitative easing programs since the financial crisis in 2008 as FED had done. They used traditional measures such as lowering interest rates and providing non-limited liquidity to the banking system in order to promote growth. However, those measures seemed not to be effective as they expect. While US has the brighter sign after 6 years of using QEs, Eurozone keep struggling with the deflation risk. In the ECB policy meeting on April 2014, the president Draghi has revealed the possibility of using "extraordinary tools" under their powers to improve the very low inflation rate which existing for a long time. The phrase "extraordinary tools" implied that ECB has changed their thinking in the case of traditional monetary measures (i.e. interest rates) could prove its power anymore. When Eurostat published the decline of inflation (dropping to -0.2% yoy in Dec 2014 from 0.3% yoy last month, the first drop below the negative CPI since the financial crisis in 2009), less positive economic data of the strongest economies such as Germany, France and Italy in Dec 2014, as well as commodity and energy prices keep falling down, QE program seems to be the best choice left.