The world economy has clearly weakened over the last few months, and Germany’s own economy is under preassure by the worldwide slowdown and Eurozone crisis, Bundesbank board member Andreas Dombret said Monday.
Dombret warned the International Monetary Fund against pressing for monetary policy solutions to the Eurozone’s crisis, central banks should not be overburden and quantitative easing added to monetary financing can be harmful. br> To his opinion, ”the repeated IMF calls for measures to ease monetary policy through ‘quantitative easing’ are problematic on the basis of their closeness to monetary state financing and inherent spreading of solvency risks between member states.”