- when they imply a transfer of risk from banks to the ECB balance sheet
- in the end this could mean a transfer of risk to the taxpayer
He’s consistent at least. BUBA head also from Riga
- ECB more concerned about prolonged low inflation than fears of broad-based deflation
- Germany is not in need of stimulus but latest data has been disappointing
- boost to periperheral countries from an increase in German public investment is likely to be negligible
- no need for debt-financed fiscal stimulus
- biggest bottleneck for Eurozone growth is structural barriers not mon policy or lack of fiscal stimulus
Weidmann- repeats his concerns for ECB ABS purchases
