BERLIN – The Q and the ECB “is not a normal instrument of monetary policy and has particular disadvantages and risks within a monetary union” . Besides, “there are indications that the inflation rate is extraordinarily low only a temporary phenomenon.” So – on the German ‘Welt am Sonntag’ – Bundesbank President Jens Weidmann. Within the board of the ECB – Weidmann explains – “the majority were worried that people get used to the prices stagnant, which can lead to a downward spiral.” The position of the number one of the Central Bank German comes in the aftermath of the words of the president of the ECB, Mario Draghi, who two days after the green light to the quantitative easing had asked the governments of the eurozone countries to redouble their reform efforts to create a “genuine” economic union. Each Member State, Draghi said, must be “in a position to benefit” from the common market “to attract capital and create jobs. For this we need structural reforms that promote competitiveness, dismantle bureaucracy and increase the adjustment capacity of labor markets. ” On Friday Weidmann had attacked the plan, saying: “It ‘clear that the purchase plan goes to reduce the pressure on countries like Italy and France, but it would be dangerous not to continue the reforms already initiated “. Already two days ago Weidmann played down the risk of deflation: “The risk of deflation – sostieneva – a spiral of lower prices and wages, is very weak” because the falling prices for energy in a positive way and pushes “is a thing good because it brings relief to businesses and consumers. “ A position that Draghi had returned to the sender simply remember that” a monetary policy oriented towards price stability in the eurozone, can not react to that shock affect only one country or region. “
- Arguments:
- quantitative easing
- Qe
- bce
- European Central Bank
- Bundesbank
- Starring:
- Jens Weidmann
- mario dragons
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