Top economists clash at Davos over ECB bond-buying

Davos

TOP economists in Davos clashed on Wednesday over the impending decision by the ECB to buy up sovereign debt, an unprecedented measure to fight deflation that powerful Germany believes would merely allow overspending eurozone states to put off reforms.

Europe has squandered three years of opportunity to carry out badly needed economic reforms, former Bundesbank chief Axel Weber said at a panel in Davos, the ski resort hosting the global elite over four days at the World Economic Forum.

"The real issue is the ECB has continuously bought time for European policy makers to fix the issue," Mr Weber said, reflecting the views of many in the current German government.

But "they didn't do that" in the past few years, said Mr Weber, who famously stormed out of his job at the Bundesbank when the ECB unveiled unconventi…