The European Central Bank (ECB) shouldn’t rush into implementing massive bond-purchase programs in the future, the head of the German central bank warned in an interview with CNBC Wednesday. The 19-country region launched a quantitative easing package — a massive stimulus program — back in 2015 to prop up the moribund economy following the sovereign debt crisis. The active bond-buying ended in December last year, but throughout its existence there was running opposition, saying it was dragging on for too long. “I have always argued that for me, the purchase of sovereign debt is a very special instrument,” Jens Weidmann, the president of the Bundesbank, told CNBC’s Julianna Tatelbaum Wednesday. “Especially in the context of a monetary union, where you have one monetary policy but 19 independent fiscal policies and, the danger of communitizing fiscal debt is very different from that of the U.S. or Japan,” he added. In the euro zone, the ECB is responsible for setting monetary policy that is supportive of the 19 member nations. However, each country is able to dictate its own spending measures. As a result, there are countries that follow more conservative fiscal targets, whereas others are often in breach of the area’s… Read full this story
- How Germany's economy shrank 10% but the jobless rate barely moved
- Eurozone crisis: Germany and France clash over eurobonds at summit
- Can Germany now hold the European team together?
- Europe steps up tech battle against coronavirus with German app
- Germany: EU summit deal increases chances of economic recovery in second half
- Germany's new virus cases fell to below 500 a day for weeks. Now they've topped 800
- Joint EU Debt Must Not Become Regular Occurrence, Germany's Weidmann Says
- EU banking watchdog sounds warning note on leveraged loans
- Cresting 'first wave' of stimulus may be next hurdle for world markets
- Merkel: 2nd summit may be needed to forge EU stimulus deal
Germany's top central banker warns against bringing back stimulus in Europe have 303 words, post on www.cnbc.com at February 27, 2019. This is cached page on IT Breaking News. If you want remove this page, please contact us.