For IMF economists, the ECB should privilege the purchase of assets – The Press

          

The European Central Bank ( ECB) should be more focused on buying assets, since action on interest rates, already negative, may not be more effective in the recovery in the eurozone. To support are Andy Jobst and Huidan Lin, economists of the International Monetary Fund (IMF). “Further cuts could weaken the effectiveness of monetary policy, if the missing interest rates to settle or customers withdrew money from banks,” they wrote the two economists on the institute’s website, based in Washington. “Focusing on the purchase of assets rather it would increase the price and aggregate demand, while supporting the loans from the banks. This would facilitate over-all transfer of improved financing conditions of real economy, credit institutions”, have Jobst and concluded Lin.

(RR)