The policy actions announced by the European Central Bank last week received major criticism on Tuesday, with the head of influential German think tank ZEW detailing his concerns about surging asset prices which he says are creating dangerous bubbles.
Clemens Fuest, from the Mannheim-based organization best known for its widely-watched economic sentiment index – told German business daily Handelsblatt that the euro zone region could be at a “turning point.”
“I’ve got a bad feeling about this…I am concerned by the danger that the ECB is producing new bubbles with its policy of cheap money,” he told the newspaper.
“We have all the ingredients of a bubble: The prices of real estate and stock markets continue to rise, and on the bond markets, yields are falling despite high risks.”
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