The head of Germany's central bank has defended his right to speak out about the need for a stable currency, even using a German literary classic to describe printing money to help governments as 'temptation from the devil'.
Jens Weidmann's comments appeared in part to be a pushback against German finance minister Wolfgang Schäuble's suggestion that he tone down public criticism of the European Central Bank and its plans to intervene in government bond markets. Mr Schäuble had said the debate among central bankers had unsettleed the public.
Mr Weidmann said in the text of a speech that it's "important for trust" that the central bankers who are responsible for the value of money "justify themselves publicly." He has criticised ECB President Mario Draghi's plan to buy the bonds of indebted countries to lower their borrowing costs. He says it's too close to using the independent central bank's power to print money to support governments' finances and that it will undermine politicians' will to cut back on spending. Some critics say the programme, along with low interest rates, is part of overly lax monetary policy that will eventually lead to higher deficits and more inflation.
Full article
Full speech
© The Telegraph
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article