Bundesbank President Says ECB Monetary Policy ‘Grave Decision’

The head of Germany’s central bank has said that quantitative easing will not solve the economic problems of the Eurozone.

MOSCOW, January 25 (Sputnik) – The president of the German central bank, Jens Weidmann, has expressed his disagreement with the ECB’s decision to implement quantitative easing in an interview with German newspaper Welt am Sonntag.

“Bond-buying by the government is not a normal instrument of monetary policy,” Weidmann told the paper on Sunday. Such a policy, when carried out in a monetary union like the Eurozone, “is connected with particular drawbacks and risks,” Weidmann continued, adding that “there should be a high threshold for their use.” Continue reading