By Michael Nienaber
BERLIN (Reuters) – The main economic institutions in Germany came out on Thursday in defense of the Central Bank European, saying it was inappropriate for the Government to criticize the ECB and instead should concentrate on their own role in promoting growth.
the ECB has been criticized by allies of German Chancellor Angela Merkel, including Finance Minister Wolfgang Schaeuble, who told Reuters this week that the policy rate ultra low interest rates in the euro zone was causing “extraordinary problems” banks and German retirees.
in its report this spring, institutes defended the monetary policy strategy of the ECB consider it “appropriate to its foundations”, as inflation and production levels in the euro zone are still extremely low.
“the savings resulting from interest allow an additional expense that would otherwise not be possible due to policy on Europe debt” they said, adding that Germany was also benefiting from these measures to a considerable level.
therefore, it is inappropriate that politicians criticize the ECB said Oliver Holtemoeller, economist at IWH.
“the expansionary stance is generally correct,” said Timo Wollmershaeuser, economist at the institute Ifo. However, he added that the debate on the unusual monetary policies such as sending money directly to citizens- highlighted the growing concern about the effectiveness of the strategy.
Jens Weidmann, head of the German central bank and who also a member of the governing council of the ECB, also supported this week’s monetary policy strategy agency based in Brussels.
“the ECB has to fulfill its mandate of price stability and therefore the position of monetary policy is appropriate at this juncture, regardless of the various positions, “he said Weidmann told the Financial Times.
KC
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