Tuesday, June 2, 2009
Breaking ranks
Merkel attacks central banks
Angela Merkel, the German chancellor, criticised the world’s main central banks in surprisingly strong terms on Tuesday, suggesting that their unconventional monetary policies could fuel rather than defuse the economic crisis. The attack on the US Federal Reserve, the Bank of England and the European Central Bank is remarkable coming from a leader who had so far scrupulously adhered to her country’s tradition on never commenting on monetary policy. “What other central banks have been doing must stop now. I am very sceptical about the extent of the Fed’s actions and the way the Bank of England has carved its own little line in Europe,†she told a conference in Berlin.
Posted by devo @ 06:56 PM (831 views)
2 thoughts on “Breaking ranks”
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mountain goat says:
Fighting talk but she stands ready to bail out German banks and manufacturers just like all the others. How will this be paid for? The only alternative to Central Bank monetisation practices she criticises is allowing big insolvent business to fall. No government seems prepared to do this.
symo says:
The first country to allow any failing industries to go bankrupt and not bailout failing financial institutions could see a massive rise in the strength of their currency enabling low inflation on essentials like energy and food. Surely no government can want this.