Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Trichet Bitch Slaps The Germans Over Ecb Bond Buying Policy

Recommended Posts

http://uk.reuters.com/article/idUKTRE69G03L20101017

European Central Bank President Jean-Claude Trichet took issue with recent comments on ECB policy by Bundesbank chief Axel Weber, saying they did not represent the views of the central bank's governing council.

In an interview with Italian daily La Stampa on Sunday, Trichet said the governing council as a whole did not agree with Weber's remark last week that the ECB's government bond-buying program had not worked and should be scrapped.

"No! This is not the position of the Governing Council, with an overwhelming majority," he said, according to an English transcript of the interview published on the ECB's website.

"This nonstandard measure, like all other such measures, was designed to help restore a more normal functioning of our monetary policy transmission mechanism. And we are withdrawing all the liquidity, euro for euro, that is supplied through this program," he said.

He also struck a less hawkish note on interest rate policy than Weber, an influential member of the governing council and one of the top candidates to take over when Trichet's own ECB term expires next year.

Asked later by reporters to elaborate on his comments and on Weber's position on the issue within the governing council, he said his position had not changed since the decision to implement the program was taken.

"I have nothing to add to what I said at the very moment we took the decision," he said. "We took the decision, it was a decision taken with an overwhelming majority."

"ONE PRESIDENT"

Last week, Weber said policymakers should not wait too long before withdrawing emergency liquidity measures and raising interest rates, prompting widespread speculation of divisions among the ECB's leaders.

"As you know, I never comment on remarks made by fellow members of the Governing Council," Trichet told La Stampa.

"What is important, of course, is that there is only one single currency; there is one Governing Council, only one monetary policy decision, and one president, who is also the porte-parole of the Governing Council," he said.

"At the last ECB press conference, I said very clearly that current interest rates are appropriate," he said, adding that the ECB had built a "very, very remarkable track record" on price stability, with average annual inflation of 1.97 percent since it took over charge of monetary policy.

"And thanks to this credibility, inflation expectations are extremely well anchored for the next five and 10 years in line with our definition of price stability," he said.

More at the link.

If Trichet is leaving next year I wonder if the French will allow a German to take over the ECB?

Still it's a nice little bitch slap on the Germans, Trichet it would appear doesn't like policy to be publically debated.

Share this post


Link to post
Share on other sites

http://uk.reuters.com/article/idUKTRE69G03L20101017

More at the link.

If Trichet is leaving next year I wonder if the French will allow a German to take over the ECB?

Still it's a nice little bitch slap on the Germans, Trichet it would appear doesn't like policy to be publically debated.

there's more to this story than meets the eye

this shot across the bows to Weber (who will certainly be jockeying for the top spot after Trichet goes) could expose a more fundamental rift between zee Germans and club med over the euro direction and to which 'flation poses the biggest threat

here's an older article (written with bias) which explores the divisions within the ECB

Share this post


Link to post
Share on other sites

there's more to this story than meets the eye

this shot across the bows to Weber (who will certainly be jockeying for the top spot after Trichet goes) could expose a more fundamental rift between zee Germans and club med over the euro direction and to which 'flation poses the biggest threat

here's an older article (written with bias) which explores the divisions within the ECB

Another good link - You're in excellent form this weekend :D

Weber only cares about Germany and thus ECB policy as it impacts Germany. These guys are quite happy to force deflation onto Greece, Ireland, Spain or anybody else if the alternative would be a little domestic inflation (spending their surpluses) in Germany. They really should just take their mark back and leave. Better for everybody in the long run.

Share this post


Link to post
Share on other sites

Another good link - You're in excellent form this weekend :D

Weber only cares about Germany and thus ECB policy as it impacts Germany. These guys are quite happy to force deflation onto Greece, Ireland, Spain or anybody else if the alternative would be a little domestic inflation (spending their surpluses) in Germany. They really should just take their mark back and leave. Better for everybody in the long run.

cheers - appreciated

if Germany doesn't go it alone perhaps we will get a two-tier euro; the obvious contenders for the premiership being in the northern eurozone, with Greece at the foot of the championship!

Share this post


Link to post
Share on other sites

cheers - appreciated

if Germany doesn't go it alone perhaps we will get a two-tier euro; the obvious contenders for the premiership being in the northern eurozone, with Greece at the foot of the championship!

That's been muted before and the Germans already prefer holding onto Bundesbank notes rather than other legally issued Euro's.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 245 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.