Stark Says ECB Will Keep Government Bonds Until Maturity

Discussion in 'Wall St. News' started by ASusilovic, May 12, 2010.

  1. May 12 (Bloomberg) -- European Central Bank Executive Board member Juergen Stark said the bank will hold the government bonds it buys until they mature.

    The purchase of government bonds won’t fuel inflation, because the ECB will “neutralize” the additional liquidity, Stark told Germany’s Deutschlandfunk in an interview today. Stark denied the Frankfurt-based bank had been pressured by politicians into the bond purchases and insisted the ECB remains independent.

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCkgvSKWoPCg
     
  2. So massive Eurozone budget deficits get monetized, with no inflation?

    Amazing. A first in economics.