ECB doesn’t just print cash in crisis
(14 May 2010 – Europe) Jean-Claude Trichet has insisted that the European Central Bank has not started ‘printing money’ in the wake of the sovereign debt crisis.
Speaking to Europe One Radio in France the central bank’s president said that the ECB hadn’t changed monetary policy in the wake of the crisis and promised that the bank would not abandon its inflation target or let the euro collapse.
He stated that he was currently more confident than ever in the euro, however continued to warn that the eurozone needed to strengthen oversight of budgetary policies adopted by certain countries.
The objective is price stability in the medium and long term, Mr Trichet said.
As a result of spiralling deficits from Greece and news of other countries hiding budget deficits, the European single currency zone has plunged into fiscal crisis.
Europe has reacted by setting up a trillion dollar rescue fund to calm markets and restore faith in the euro.
As ECB buys up debt it puts more money into circulation and risks driving up eurozone inflation
Mr Trichet insisted that the central bank remained independent saying that they haven't just started printing money, just take quick look at the decisions that don't call into question medium term price stability.
He stated that he was currently more confident than ever in the euro, however continued to warn that the eurozone needed to strengthen oversight of budgetary policies adopted by certain countries.
The objective is price stability in the medium and long term, Mr Trichet said.
As a result of spiralling deficits from Greece and news of other countries hiding budget deficits, the European single currency zone has plunged into fiscal crisis.
Europe has reacted by setting up a trillion dollar rescue fund to calm markets and restore faith in the euro.
As ECB buys up debt it puts more money into circulation and risks driving up eurozone inflation
Mr Trichet insisted that the central bank remained independent saying that they haven't just started printing money, just take quick look at the decisions that don't call into question medium term price stability.
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