Easy money cannot kindle sustained growth, but can lead to greater risks to the financial stability, European Central Bank policymaker Jens Weidmann said, referring to the bank’s asset purchase programme.
“All the cheap money cannot ignite sustained growth and, in time, will lead to greater risks, for example to financial stability,” Weidmann, who heads Germany’s Bundesbank, said in an interview to the Sueddeutsche Zeitung newspaper, published Wednesday.
Regarding the massive influx of refugees into Germany, Weidmann said while the situation is challenging, it presented opportunities. “These will be bigger, the better we are able to integrate the people permanently into the society and the labor market,” the he said.
Citing the demographic change, especially the ageing population, Weidmann said Germany needs additional workers to maintain its prosperity.
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