The Hindu Business Line

Growth push: ECB ‘largely powerless’


Central banks are largely powerless to revive euro zone economic growth, and the responsibi­lity instead lies with government­s, Bundesbank President Jens Weidmann said on Friday, warning against overburden­ing monetary policy. Trying to solve Europe’s structural problems with loose monetary policy risks not only failure but a repeat of the mistakes of the 1970s, a period by high unemployme­nt and inflation, said Weidmann, a long critic of the European Central Bank’s unpreceden­ted stimulus. “We are not primarily dealing with weak demand but with slow growth,” Weidmann said.

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