13 Feb 2015
EQ cannot resolve structural problems – ECB’s Weidmann
FXStreet (Mumbai) - President of Germany's Bundesbank and the European Central Bank (ECB) Governing Council member Jens Weidmann said at a banking congress in London that asset purchases are not effective and cannot resolve structural problems.
Key Quotes:
"In my view there was no immediate need for this particular measure,"
“(ECB) has played a significant role in preventing an escalation of the crisis. However, central bank action cannot replace the necessary adjustment processes. In this regard, I appreciate assurances by European leaders to the effect that QE must not substitute structural reforms,"
"What we are currently seeing is a disinflationary process, not a deflationary spiral of decreasing prices and wages. The risk of self-reinforcing deflation is still considered to be very low."
Key Quotes:
"In my view there was no immediate need for this particular measure,"
“(ECB) has played a significant role in preventing an escalation of the crisis. However, central bank action cannot replace the necessary adjustment processes. In this regard, I appreciate assurances by European leaders to the effect that QE must not substitute structural reforms,"
"What we are currently seeing is a disinflationary process, not a deflationary spiral of decreasing prices and wages. The risk of self-reinforcing deflation is still considered to be very low."