The European economy is “on the brink of deflating” and urgently needs more stimulus, particularly from the continent’s largest economy Germany, former U.S Treasury secretary Larry Summers said on Tuesday.
Summers also said central bank bond buying, known as quantitative easing, would be welcome and certainly better than no action at all.
“Is it too much to ask that Germany take a forward-looking view of a common European destiny in thinking about macroeconomic policy … rather than a retaining a green-eyeshade accounting mentality?”
The European Central Bank is widely expected to unveil a sovereign bond-buying programme at a policy meeting on Thursday in a bid to ward off deflation and kick-start growth.
Full article: Europe on brink of deflating, needs stimulus (World Bulletin)