MercoPress, en Español

Montevideo, November 16th 2018 - 07:36 UTC

Germany warns global economy faces financial bubble: too much central banks stimuli

Saturday, September 12th 2015 - 09:51 UTC
Full article 11 comments
“We should take on board the lessons of the last crisis,” said finance minister Wolfgang Schaeuble in his Budget speech “We should take on board the lessons of the last crisis,” said finance minister Wolfgang Schaeuble in his Budget speech
The minister emphasized that economic reforms should not be neglected in favor of an over-reliance on central bank stimulus to prop up economies. The minister emphasized that economic reforms should not be neglected in favor of an over-reliance on central bank stimulus to prop up economies.

The global economy faces a financial bubble from central banks pumping cash into economies, Germany's finance minister has warned. The comments come after the European Central Bank (ECB) said it would extend its stimulus program if needed.

 “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 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.

He stressed the need for structural reforms stating: “When we call for structural reforms in return for financial assistance, this isn't some narrow-minded mantra being repeated by people who have lost sight of the big strategic questions of the future.

”In fact, this may well be the most important long-term strategic question we face today” underlined the German minister.

Categories: Economy, Politics, International.

Top Comments

Disclaimer & comment rules
  • Briton

    And so it came to be ===
    Europe walked into conflict and war,

    after 70 odd years of peace, Germany opens the doors to hell,

    just my burning opinion..

    Sep 12th, 2015 - 11:35 am 0
  • Conqueror

    The global economy or just Germany's? Britain seems to be doing okay, thanks. But then it isn't tied to the political euro. Of course, Germany has to follow the monetary policy of the European Central Bank headed by an Italian.

    Sep 12th, 2015 - 01:26 pm 0
  • Brasileiro

    Germany is fuck!

    Sep 12th, 2015 - 01:56 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!