Warning over handling of debt crisis
The European Central Bank must ensure that its crisis-fighting measures do not distort financial markets and give rise to new crises, Bundesbank board member Andreas Dombret said.
“In handling the sovereign debt crisis, the Bundesbank will continue to advocate setting the right incentives,” Mr Dombret said yesterday.
“For monetary policy that means that we should not lose sight of an exit from extraordinary measures and to carry that out when the opportunity comes.”
Advertisement
Hide AdAdvertisement
Hide AdThroughout the financial crisis the ECB has offered banks unlimited amounts of central bank funding, for example by handing out ultra-long three-year loans, and it has bought government and private-sector debt.