And he’s absolutely right ofcourse

  • Euro bonds would mean transfer union
  • Would treat the symptoms, not address the cause of crisis
  • Neither doubling EFSF funds, nor ECB pumping more money into system would work
  • Structural corrections are needed instead
  • Size and speed of ECB bond purchases will depend on how long market tensions continue
  • Asked on ECB liquidity provisions, says Aug 4 decision to offer 6 month liquidity was “one-off measure”
  • Keeping interest rates too low for too long leads to excessive risk taking, undermines growth potential