MONTREAL (MNI) – Christian Noyer, a member of the European Central
Bank’s Governing Council, said Monday any proposed new international
financial regulations must be flexible and diversified to adjust to
economic differences.
“We have a common understanding of what is happening in different
economic zones. But appropriate policies must be different,” Noyer said
during the question and answer session following his speech at the
International Economic Forum in Montreal.
Noyer, also the governor of the Bank of France, added: “There are
still some economies in recession. Others, in emerging countries, are
buoyant. This calls for different economic policies.”
Regarding stimulus packages, Noyer said it is important not to
create ongoing spending programs that continue into the future.
“It is not enough to throw money into the economy; it would have
much better effect if it is targeted carefully,” he said.
In his prepared remarks, Noyer noted the economic recovery in
Europe is modest “but remains fragile,” adding that the financial crisis
in the euro zone demonstrates the need for financial reforms.
He added that the experience shows there is need for public
scrutiny earlier in a financial crisis.
The ECB official also said there needs to be a broad consensus on
the reduction of public debt.
In addition, regulators must have their authorities reinforced so
that they are able to act earlier and decisively to prevent future
crises, he said.
He noted that measures taken by policymakers, especially after the
collapse of Lehman Brothers in 2008, had “spectacular” results in
stabilizing markets.
** Market News International **
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