FRANKFURT (MNI) – It is essential to avoid the emergence of
second-round inflation effects, European Central Bank President
Jean-Claude Trichet said, adding that the ECB will always do what is
necessary to deliver price stability, in line with its mandate.
“We, as central bankers, are responsible for avoiding second-round
effects,” Trichet said in an interview published in Die Zeit on
Wednesday.
The ECB head stressed that the central bank has “ensured price
stability by taking the necessary decisions.”
Trichet also reiterated that the current crisis was not a “euro
crisis,” noting that the single currency had retained its value and
remained credible and stable.
“Our problem is that the fiscal policies of some member countries
have not been sound and that some countries are also lacking
competitiveness,” Trichet said.
The central banker said that the current rise in inflation had
nothing to do with the crisis, but was the result of the economic
expansion in emerging economies.
Trichet strongly rejected the idea that central banks, including
the ECB, had flooded the economy with money. The central bank has never
lost sight “of the fact that our mandate is to deliver price stability,”
he said.
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