The European Central Bank (ECB) issued the following statement after its June 2017 meeting on monetary policy:
Regarding non-standard monetary policy measures, the Governing Council confirms that the net asset purchases, at the current monthly pace of €60 billion, are intended to run until the end of December 2017, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim.
a. What is this nonstandard monetary policy of net asset purchases called? What other central banks have used it?
b. Based on this statement, do you expect that the inflation rate is above or below the ECB’s inflation target? Briefly explain.