For Volker Wieland, the ECB is in a predicament ("Süddeutsche Zeitung")

Prof. Volker Wieland sees Christine Lagarde, the new President of the European Central Bank (ECB), in a predicament. There was almost no room for maneuvers anymore in case the current economic slowdown would turn into a crises, he said in an interview with the German daily "Süddeutsche Zeitung".

The ECB had missed the right moment to exit the bond purchase program and raise interest rates in 2018. According to Wieland, the new bond purchases are not necessary and are threatening financial stability more and more.

Due to the low interest rates, Wieland fears raising house pricing could increase the risk of a sharp correction.

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