Baillie Gifford: Why Europe needs QE (and the US does not)

Baillie Gifford's chief investment officer has said Europe's only option to tackle enormous budget deficits is to print more money.

Gerald Smith called for eurozone leaders to inject further stimulus into markets as soon as possible, giving them a much needed boost. "Eurozone leaders simply cannot continue ignoring the large amounts of government debt and the only way to reduce the indebtedness is by printing lots of money," said Smith. "Although QE would increase inflation it is the only way the huge debt levels can be refinanced, as the European Financial Stability Facility cannot cope with the refinancing requirement, and the European Central Bank will not come up with permanent measures to fund governments." ...