Bundesbank chief Jens Weidmann said on Thursday it was not up to the European Central Bank to solve the euro zone crisis, resisting pressure from other ECB policymakers for the bank to widen its range of policy tools.
Speaking in Paris, Weidmann declined to comment on U.S. Federal Reserve chairman Ben Bernanke’s remarks that the U.S. central bank may start to trim its bond purchases at one of its next policy meetings.
Focusing on the situation in the euro zone he said: “Monetary policy, that is to say the Eurosystem (of euro zone central banks) has already done a lot to curtail the crisis.”
“But monetary policy cannot solve the crisis, we are completely united on that in the ECB Governing Council,” Weidmann, a member of the policymaking body, told a conference.
Weidmann made his comments after another ECB policymaker, Peter Praet, said the bank could try new policies if needed to battle deflation risks and that it was weighing up measures to encourage more lending in the euro zone.