Bundesbank President Jens Weidmann, speaking to reporters in Cairns, Australia at the G20 meeting over the weekend said the leeway governments have for economic stimulus through fiscal policy is often more limited than commonly believed:
- Fiscal leeway “is usually much smaller than many think”
- “It is limited by European rules, national rules, it is impacted by high debt levels, the demographic burdens we will face, but also by the credibility of a sustainable fiscal policy”
- “And that’s true specifically for Germany, which has to cater to its role as confidence anchor in the monetary union”
- “We are currently in a situation of normal capacity utilization and therefore no fiscal stimulus is needed from the German perspective”
- “If one takes on a European perspective, one shouldn’t overestimate how big the effect of a German stimulus program would be on other countries”
Some eye candy for ladies – plenty more where this came from in Cairns, ladies!
via Bloomberg
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French PM Valls meets with German Chancellor Merkel on Monday in Berlin, bet he won’t want to be hearing things like this.
