- but doesn’t expect a longer recession
- says QE is justified if inflation expectations continue to decline. it is justified to do so
- if the effect of QE is to take toxic assets off banks’ balance sheets we are moving beyond the standard monetary policy
- what the ECB can do is coming to an end. Govts will have to act now
ZEW president on the wires with an honest assessment of current conditions
Be afraid. Be very afraid
More from Fuest
- maybe not the best idea to insist on balanced budget in Germany
- not best signal for Eurozone.
- may be seen as dogmatic
ZEW’S Fuest in reality check mode
