Bundesbank President Jens Weidmann in an interview with a German newspaper on Sunday said he had doubts the European Central Bank quantitative easing would be effective:
- He said he voted against the ECB’s QE plan
- Said he didn’t see a need for the program
Said the impact of the ECB’s QE will likely be smaller than in the U.S.
- Interest rates were initially higher when the Federal Reserve started a similar program
- U.S. companies use capital markets for their funding to a larger extent than companies in Europe
“It’s hard to predict what the effects will be, but in Europe they will probably be less than they were in the United States”
Weidmann interviewed in Welt am Sonntag newspaper
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Reuters and the Wall Street Journal (gated) have more
