The European Central Bank (ECB) shouldn’t rush into implementing massive bond-purchase programs in the future, the head of the German central bank warned in an interview with CNBC Wednesday.
The 19-country region launched a quantitative easing package — a massive stimulus program — back in 2015 to prop up the moribund economy following the sovereign debt crisis. The active bond-buying ended in December last year, but throughout its existence there was running opposition, saying it was dragging on for too long.
“I have always argued that for me, the purchase of sovereign debt is a very special instrument,” Jens Weidmann, the president of the Bundesbank, told CNBC’s Julianna Tatelbaum Wednesday.
“Especially in the context of a monetary union, where you have one monetary policy but 19 independent fiscal policies and, the danger of communitizing fiscal debt is very different from that of the U.S. or Japan,” he added.
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