A story out earlier that slipped under the radar but some of you might have seen
German fin min quoted in interview with Bbg done yesterday but published today
- ECB does not have the instruments to fight deflation
- monetary policy has run out of tools
I don’t think ECB monetary policy has the instruments to fight deflation, to be quite frank
Monetary policy can only buy time.
Liquidity in markets is not too low, it’s even too high. Therefore I think monetary policy has come to the end of its instruments and therefore what we urgently need is investments, regaining confidence by investors, by markets, by consumers
