Now up to others, says ECB
January 24, 2015
Executive board member Coeure told a panel in Davos on Saturday that the ECB package amounted to encouragement to governments to proceed with reforms such as making job markets more flexible.
"We have done our part, others have to do their part," Coeure said, while playing down worries that the ECB's 1.1 trillion-euro ($1.2 trillion) bond-buying program might ease pressure on governments to reform their economies.
"Being patient is just a risk that we don't want to take," he said.
The euro's fall to around $1.12 since the ECB announced its package on Thursday was part of the stimulus impact, but aiming for a lower exchange rate had "not the main consideration," Coeure said.
Carney welcomes stimulus
Bank of England governor Mark Carney welcomed the ECB stimulus move, saying this, coupled with an anticipated long period of low oil prices, could help to shore up the global economy.
"That creates an opportunity that is considerable and possibly undervalued for the global economy," Carney said.
He warned that low interest rates around the world and stimulus programs in Europe and Japan could tempt some economic actors to try "excessive risk-taking."
Offsetting that was a better international supervisory framework that left the world more able to deal with events than in 2008, when the global financial crisis emerged.
In a similar vein, Japan's central bank chief, Haruhiko Kuroda voiced optimism. "Some of the pessimism prevailing in Davos this year is a bit exaggerated," he said.
Ministers push for WTO settlement
Davos' closing day also saw trade ministers of 21 members of the World Trade Organization (WTO) agreeing to push for completion of the so-called Doha Round negotiations, which aim to lower trade barriers and revise trade rules.
Swiss Economy Minister Johann Schneider-Ammann, who chaired the sideline talks on Saturday, said ministers expressed confidence that they could resolve issues in the areas of agriculture, industry, and services.
"It was the clearest commitment today I [have] ever had before," he said.
Some 2,500 guests attended the four-day Davos gathering, which began on Wednesday in the Swiss sky resort, protected by thousands of Swiss soldiers.
Overshadowing it were recent terror attacks in France, Nigeria and the Middle East and lingering issues such as Ebola in western Africa and global climate change.
ipj/bk (dpa, AFP, AP)