- Cannot use same formulas that were used in Japan and elsewhere
- Treaties rule out a mutualisation of risks
- We have a monetary policy which is too expansive for Germany (you also have a large surplus that you could put to good use but won’t chum)
- Monetary policy is expansive and rightly so
- Discussion over unconventional policies is difficult
- Disagrees that monetary policy has no tools left
- Lower interest rates can result in lower willingness to make structural reforms
- Governments have to take long arduous reform path
- Oil driven inflation very different to wage driven inflation
I get the feeling that tensions are rising within the ECB and they’re going to really start spilling out into the public domain.
Adam had a fantastic post up last night on how close the battle to push through QE might be
Weidmann is speaking at the Zeit economic forum in Frankfurt
