Sounding like the conservative Bundesbanker he once was, Stark says that he sees risks that fiscal deficits will get out of control.
To withdraw fiscal and monetary stimulus too soon would lead to the collapse of the banking system, Stark says, sounding more ECB that Bundesbank…
There is no clear evidence of a credit crunch, Stark repeats
The comments come amid headlines from the IMF calling for a gradual removal of fiscal stimulus.
