ECB Money-Printing Shouldn’t Become ‘Unbound’, Says Weidmann


FRANKFURT (Reuters) – The European Central Bank’s massive buying of government bonds shouldn’t become a form of “unbound”, permanent help to indebted governments, ECB policymaker Jens Weidmann said on Monday.

The head of the Bundesbank defended the ECB’s “flexible” purchases, which have been focused on debt from struggling Italy, but said these should only be temporary.

“‘Flexible’ should not mean ‘unbound’,” Weidmann said in a recorded message. “Again, it is important to me that monetary policy does not set the wrong incentives for public finances.”

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