QE in Europe will delay recovery...

Europe should learn from Japan that as far as unemployment is concerned QE will help, but, deflation may persist long... The rate of inflation tells that there is a downward-bias... which either might be a demand problem, because unemployment is high, but, again, it may also depend on the eagerness of firms to hire because they have unsold inventories, or, means, oversupply, a supply-side-problem... Inflation tells the true story... But, when the QE will start, firms will expect higher demand and they will, with the help of QE – labour is cheap, capital is cheap, demand more with reduction in the unemployment-rate... But, more supply when already there is a glut will keep on reinforcing lower-price expectation among the agents, they will delay consumer-spending till QE is over and firms fear-rate hike, again US is a good example... Therefore, if somehow firms start fearing (actually expect) that interest-rates will, now, go up soon, they will resume spending, but, since higher rates also affect the public-debt, the European central bank is in no mood to hurt the austerity-drive, because that would increase the burden on the government (i think)... on the public, too... QE will put the economy, when interest-rates are rock-bottom, in the famous Keynesian-liquidity-trap because of people’s expectation, they will post-pone spending... Even, now, we can not deny that Europe is in the trap because, again, interest –rates are at their institutional minimum since a long-time...