In Volker Wieland's opinion, the monetary policy of the European Central Bank (ECB) is too expansionary also after the British voted for the Brexit in the referendum. In any case, the central banks should be ready for crisis management at short notice and provide stumbling banks with liqudity in order to prevent damage from the financial system, he said in an interview with the Swiss newspaper "Neue Zücher Zeitung". However, monetary policy should follow medium-term inflation development.
In Wieland's opinion, the ECB's focus on the Harmonised Index of Consumer Prices (HICP) is not helpful as it includes energy prices, which are very volatile. Other inflation measures like the consumption deflator or the GDP deflator, which measures all domestically produced goods, point to higher interest rates.
NZZ: "Die Geldpolitik ist viel zu expansiv"