ECB's Lautenschlaeger rebuffs QE as German opposition grows
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Frankfurt
EUROPEAN Central Bank (ECB) executive board member Sabine Lautenschlaeger says quantitative easing (QE) isn't the right policy choice for the euro area currently - hardening a split among officials over the right response to slowing inflation.
"A consideration of the costs and benefits, and the opportunities and risks, of a broad purchase programme of government bonds does not give a positive outcome," Ms Lautenschlaeger, a former Bundesbank vice-president, said at an event in Berlin last Saturday. "There are very few shared competencies in fiscal policy. As long as this is the case, the ECB's purchase of government securities is inevitably linked to a serious incentive problem."
