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