Don't Rule Out Quantitative Easing: Top ECB Official |
| Forbes - Dec 23, 2011 |
As the year draws closer to an end Europe is still without a solution for its debt problems, but a top European Central Bank official is not ruling out quantitative easing to help solve the mess.
ECB executive board member Lorenzo Bini Smaghi told the Financial Times in an interview that the printing money and buying bonds shouldn’t be ruled out as mechanism to stabilize the troubled Eurozone. So far many across Europe, particularly officials in Germany, have resisted calls for such measures.
But Smaghi, who is stepping down from his post at the ECB at the end of the year, thinks otherwise telling the FT, “I do not understand the quasi-religious discussions about quantitative easing.” Such steps had been taken in the US and UK, where the central bank had seen deflation risks. Currently, the ECB did not see deflation risks for the eurozone. “But if conditions changed … I would see no reason why such an instrument, tailor-made for the specific characteristics of the euro area, should not be used.”
Read Full Article from Forbes
- Posted: 2011-12-23 12:27:49
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