Volker Wieland: This ECB decision has long since been overdue ("Börsen-Zeitung")

The European Central Bank (ECB) has announced to end its bond purchase program by the end of 2018. For Volker Wieland this decision has long since been overdue. "Monetary policy has been in a crisis mode of massive bond buying for much too long," he said in an interview with the German financial daily "Börsen-Zeitung".

In view of persistent growth rates around 2 percent, approximate full utilization of production capacity on average in the euro area and inflation rates of more than 1 percent, the ECB could have ended bond purchases earlier, Wieland said. However, first of all, it shouldn't be overlooked that the ECB has extended bond purchases.

"I hope the risks associated with these bond purchases remain controllable," Wieland said. In the medium run, the ECB should reduce again the size of its balance sheet.


Börsen-Zeitung: "Diese Entscheidung war schon lange überfällig" (Paid Content)