Volker Wieland considers step toward normalization of ECB monetary policy advisable at the end of the year (Neue Zürcher Zeitung)

According to Prof. Volker Wieland the European Central Bank should head for a normalization of monetary policy at the end of the year. He explained the reasons for this in an interview with the "Neue Zürcher Zeitung" (NZZ).

As vaccination progresses, the Corona crisis should be subsiding by then, and the volume of the emergency purchase program PEPP would not have to be fully utilized. Wieland went on to say that the ECB could not assume responsibility for the financing conditions of the member states in the long term.He expects that the ECB will not have to exhaust the volume of the PEPP, but fears that the central bank may be pressured to invest the full volume of 1850 billion euros, to the extent that a halfway plausible justification can be found.

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