In an interview with the daily newspaper "Frankfurter Allgemeine Zeitung" Volker Wieland takes stock after one year of the European Central Bank's (ECB) purchase program. The quantitative easing of the ECB has created distortions on the financial markets. Wieland strongly advises the ECB against further easing of its monetary policy.
The medium-term and long-term interest rates are extremely low and the asset prices are inflated. The developments in Asia have created distortions on the stock market. According to Wieland, also the banks are at risk due to the low long-term credits.
In an interview with the website Boerse.ARD.de Volker Wieland said that considering all these risks the ECB should rather end its purchase program ahead of time than expand it.
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