Weber says central bank and government support cannot be increased further and is no substitute for a self-sustaining recovery.
In the text of a speech to be given at the University of Leipzig Weber says “The massive monetary and fiscal impulses, although necessary and correct, can and should not be increased further and do not replace a self-sustaining recovery.”
He adds
“Now that we have reached a stabilisation in the economy and financial markets, it is time to think about the further handling of the crisis. To this belong the design of exit strategies from the monetary and fiscal stimulus, as well as long-term adjustments in the framework which contributed to the creation of the crisis.”
Weber didn’t discuss the question of the timing of exit strategies or give any details about the ECB’s plans.
