QE without inflation targeting (Europe)...

QE means more money-supply, more demand/supply and growth. But, inflation targeting is making things worse. It means you are committing income and inflation at the same time, because any policy ultimately increases wages and income which creates demand/supply in the economy. But, by committing inflation you are actually cutting real wages. Keynes said that there is nominal-downward-wage-rigidity, but there is always scope to cut-down real-wages by increasing inflation. Blind following of the QE in the US will not get results as long as you are not sure which variables should be affected to achieve full-employment and growth. In general we think that nominal interest-rate decides the level of investment, but, actually, it is real interest rate. Both, real interest rate and real wages also reflect the cost of investment. Not sure what the central-banks are trying to achieve, but they are working against the demand. All their efforts are to help Capitalists by cutting of real interest-rate and real wages to improve supply. But, very low inflation means there is over-supply. It is an oversupply problem due to high inflation and low real interest rate before the recession which has led to lay-offs due to decreased demand relative to supply. Therefore, if ECB wants to increase demand relative to supply and investment is should not commit inflation as it is likely to hurt demand. QE without inflation targeting is likely to help more. People will have more money...