G7 Summit: Germany's Schaeuble says no big decisions have been made

Author: Mike Paterson | Category: News

German finance meeting speaking from Sendai 21 May 2016

Hands up anyone who's surprised? No, I thought not. lol

  • very high liquidity in markets is a risk
  • high volatility in markets is a high risk for global economy
  • agreed that state of the global economy is better than some of us thought
  • structural reforms are not important
  • finance, mon pol has to play its par
  • G7 agrees that Brexit would be the wrong way for UK
  • no differences between him and IMF's Lagarde on Greece
  • optimistic that Greek problems wull be solved but not convinced this will happen at Eurogroup meeting on Tuesday

BUBA head Jens Weidmann also from G7:

  • German growth will decline in the upcoming month from high level in Q1
  • side effects of expansive monetary policy increases the longer that it lasts
  • does not see much fiscal space to act in many countries
  • exchange rates must not become an instrument of CB's active mon pol, could cause competitive devaluation

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