Ifo chief, Vost: The ECB is too late 06/09/22

Munich (dpa-AFX) – For Ifo President Clemens Fuest comes the announcement made by the European Central Bank high rate Too late. “It was not acceptable for the European Central Bank to stick to negative interest rates and buy bonds with inflation at eight percent,” he said Thursday at the institute’s annual meeting in Munich. monetary policyNo doubt.” He predicts a slide into recession: “Yes, unfortunately.”

Even higher debt with higher interest rates is dangerous for already indebted euro countries. When the days of cheap money and bond-buying by the European Central Bank are over, governments will have to decide what spending is really necessary.

Fuest said further easing of debt rules currently on hold would only be “a signal that we are paying less attention to sustainability in fiscal policy than before.” If many motorists race in a place at a speed of 100 km / h, no one would think to replace 50 km / h with a more flexible system with more room for drivers. However, one should not expect too much from the rules of religion. /roll/DP/jha