Friday, October 10, 2014 - 13:04
Dijsselbloem rejects IMF's Europe recession remarks
On Thursday Jeroen Dijsselbloem (President of the Eurogroup and Minister of Finance) dismissed the people criticizing the European Central Banks' efforts to fight a stall in the eurozone's economy. At the IMF-World Bank meetings in Washington Dijsselbloem noted that the ECB's programs are only just beginning when he was asked why everyone thinks that their efforts to stimulate the economy are too small. "How can we know the effect when these operations are yet to take place?" he asked. In June the ECB decided to start its TLTRO program (target longer-term refinancing operation) which injects liquidity into the economy through banks. So far this program has grown slowly. At the end of the month the ECB will start purchased of covered bonds and asset-backed securities in the market to help keep down long-term interest rates. Dijsselbloem defended the ECB's limited roll pointing at the need for governments to support struggling economies. "We should expect a little less from the central banks and a little more from the politicians."