Germany's Schaeuble says expansive policy cause of economic woes, not solution

5/12/2014

German Finance Minister Wolfgang Schaeuble said on Friday expansive monetary and fiscal policies were a cause of economic problems, not a solution to them.

Commenting on the idea that economic weakness required an expansive monetary and fiscal policy, Schaeuble said: "I am not convinced of this. Rather, I am of the view that this approach is not the solution, rather the cause (of economic woes)."

Schaeuble's remarks come shortly after the president of the European Central Bank said the bank would decide early next year whether to take further action to revive the euro zone's ailing economy.

Mario Draghi underlined the central bank's commitment to supporting the economy of the 18-country bloc and argued the case for printing money to buy assets such as government bonds.

He also signalled that opposition from Germany or other euro zone governments would not keep the ECB from acting.

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