Germany’s Bundesbank said it rejects the International Monetary Fund’s call for the European Central Bank to “increase” its bond purchases to stem the region’s fiscal crisis.
“The Bundesbank stresses the significance of a strict division between monetary and fiscal policy,” the Frankfurt- based institution said in a statement today. “Therefore, we reject the IMF recommendation in the World Economic Outlook to increase the purchase program of government bonds in the Eurosystem.”
The IMF said yesterday that the ECB “must continue to intervene strongly” in European debt markets to “maintain orderly conditions.”
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