Monetary policy of the European Central Bank: 1999–2013
The expansionary monetary policy of the European Central Bank at the beginning of the 21st century gave rise to a big credit expansion. The expansion was distributed unevenly among the Eurozone member states and it led to an economic boom, especially in the real estate market. The malinvestments from the boom period brought about severe economic crisis. Since the crisis ECB acts (lends banks unprecedented amounts of money, against poor collateral, for extended period of time, at record low interest rates) like his main end is keeping the European banking sector afl oat, not the officially stated inflation targeting.