In an interview with the Wall Street Journal, German Bundesbank President Jens Weidmann:
- Criticized the European Central Bank’s decision to buy private-sector bonds
- Chastised France for budgetary laxness
- He warned of the danger of relying too much on central banks to solve economic problems
- “There is a risk of monetary policy, especially in the euro area, being held hostage by politics,”
The journal says that
- While France and Italy, struggling with stagnant economies, have recently argued for more leeway in applying the European Union’s budget rules, Mr. Weidmann—one of Germany’s leading public figures—signaled no flexibility. The IMF and other international institutions have called on the ECB to consider buying government bonds, but Mr. Weidmann said such a policy would be a “dangerous path.”
More at the article, but it may be gated: Bundesbank’s Weidmann Criticizes ECB’s Stimulus Measures
