Tags: Germany | Bruederle | Currency | War | Disaster

Germany's Bruederle: Currency War Would Be a Disaster, Must Be Avoided

Thursday, 04 Nov 2010 08:51 AM

German Economy Minister Rainer Bruederle said on Thursday he was concerned at U.S. efforts to stimulate growth by injecting liquidity into its struggling economy.

"I view that not without concern," Bruederle said, adding that a variety of measures were needed to solve the problem and it was not enough to pump in liquidity alone.

"We hope the U.S. economy gets back up stronger on its feet," he said.
Bruederle also said there was some truth to the criticism that the United States was influencing the dollar's exchange rate with monetary policy and voiced concern about increased protectionism in different forms around the world.

The U.S. Federal Reserve committed on Wednesday to buy $600 billion of bonds with new money over the next eight months, after what it called "disappointingly slow" progress towards its economic targets.

Its action lifted riskier assets around the world despite concerns the program could do more harm than good.

Bruederle said China had been criticized for having an undervalued currency but Beijing argues that U.S. monetary policy is also artificially influencing its currency. The German minister said there was some truth to that.

He said a currency war would be a "disaster" which must be prevented and also said U.S. midterm election results made him more concerned about protectionism.

"I fear that there could be a trend in that direction," said the minister.
Bruederle dismissed criticism from some countries that Germany had not done enough to fight economic imbalances. He said Germany has already done its homework to fight imbalances.

He said trade imbalances could not be evened out with planned economy methods and many of Germany's neighbors were benefiting from Germany's strong economic growth.

"A large number of our European neighbors are living off Germany at the moment," he said.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
Economy
German Economy Minister Rainer Bruederle said on Thursday he was concerned at U.S. efforts to stimulate growth by injecting liquidity into its struggling economy. I view that not without concern, Bruederle said, adding that a variety of measures were needed to solve the...
Germany,Bruederle,Currency,War,Disaster
295
2010-51-04
Thursday, 04 Nov 2010 08:51 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved