New Zealand PM Key speaking in an interview in Davos:

  • QE alone won’t fix Europe’s problems
  • Sees New Zealand dollar trading in a range in coming months

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When Key was a New Zealand dollar trader his views on the currency were well worth listening to. Still are. Maybe more so …

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There is gonna be more to come on this

And … here it is (via Bloomberg):

  • On quantitative easing alone … “If people think this will be the magic silver bullet, then I think they’re wrong”
  • “As we saw in Japan, it buys you some time, but it can’t fix the underlying issues of competitiveness.”
  • “It’s easy to say, but ultimately as we’ve seen in Japan, where they’ve had QE, it’s a short-term sugar hit … If you really want a long-term fix for your economy, you have to undertake structural reform. The question here is whether such a big program ultimately just masks that structural reform and in a way delays the inevitable.”