The global economy faces a financial bubble from central banks pumping cash into economies, Germany’s finance minister has warned.
“We should take on board the lessons of the last crisis,” said Wolfgang Schaeuble in his Budget speech.
He added that economic reforms should not be neglected in favour of action from central banks.
The comments come after the European Central Bank (ECB) said it would extend its stimulus programme if needed.
The ECB launched its €1.1 trillion bond-buying scheme – a form of monetary policy or quantitative easing – in January to support the eurozone economic recovery, which the bank’s president, Mario Draghi, said could be extended beyond 2016 if needed.
Mr Schaeuble has repeatedly warned against an over-reliance on central bank stimulus to prop up economies.
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