Your "Euro QE but on an organized basis" was roughly the proposed line of rescue from the Irish academic on Wake Up To Money a few days ago, although he did not have the sense to say "but of course it isn't going to happen".
The ECB doesn't have the firepower to do it on its own (its funds are meant to solve temporary liquidity problems, not systemic disasters) and the eurozone as a whole just won't do it. The disadvantage of the euro being "the Deutschmark writ large" is now clear. Far from just getting the benefits of being a strong currency, the peripherals are getting the quid pro quo of having to act in a way that brings about a strong currency. But they can't do that from where they are starting now (as you point out) because to do so causes a short-term contraction that would make 1980-82 in the UK look like a hiccup.
One possible solution could be the "patriot bond" idea (hell, this is effectively a war that needs financing, so why not use wartime techniques). Given the low rates of interest available at the moment (and for the next few years, from the look of it), pushing bonds to retail investors at, say, 5% tax-free might actually fly.
Re: The Aardvark says...
The ECB doesn't have the firepower to do it on its own (its funds are meant to solve temporary liquidity problems, not systemic disasters) and the eurozone as a whole just won't do it. The disadvantage of the euro being "the Deutschmark writ large" is now clear. Far from just getting the benefits of being a strong currency, the peripherals are getting the quid pro quo of having to act in a way that brings about a strong currency. But they can't do that from where they are starting now (as you point out) because to do so causes a short-term contraction that would make 1980-82 in the UK look like a hiccup.
One possible solution could be the "patriot bond" idea (hell, this is effectively a war that needs financing, so why not use wartime techniques). Given the low rates of interest available at the moment (and for the next few years, from the look of it), pushing bonds to retail investors at, say, 5% tax-free might actually fly.
PJ