Tags: Weidmann | ECB | Print | Money

Weidmann: ECB Can’t Print Money to Finance Public Debt

Tuesday, 08 Nov 2011 02:07 PM

European Central Bank council member Jens Weidmann said the ECB cannot bail out governments by printing money.

“One of the severest forms of monetary policy being roped in for fiscal purposes is monetary financing, in colloquial terms also known as the financing of public debt via the money printing press,” Weidmann said in a speech in Berlin today.

The prohibition of monetary financing in the euro area “is one of the most important achievements in central banking” and “specifically for Germany, it is also a key lesson from the experience of hyperinflation after World War I,” he said.

The ECB is under pressure to ramp up its bond purchases to cap soaring yields in Italy as governments fail to contain the two-year-old sovereign debt crisis.

Weidmann also rejected proposals to use Bundesbank currency and gold reserves to help finance bond purchases by a special fund, saying this is another form of monetary financing.


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European Central Bank council member Jens Weidmann said the ECB cannot bail out governments by printing money. One of the severest forms of monetary policy being roped in for fiscal purposes is monetary financing, in colloquial terms also known as the financing of public...
Weidmann,ECB,Print,Money
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2011-07-08
Tuesday, 08 Nov 2011 02:07 PM
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