Stark Says Central Banks Must Keep Focus on Price Stability
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European Central Bank Executive Board member Juergen Stark said central banks must guard their independence and keep their focus on price stability or risk being dominated by free-spending governments.
“Crucial challenges in this regard include the risk that monetary policy is overburdened by fiscally dominant regimes caused by government’s irresponsible fiscal behavior and unsustainable public finances,” Stark said today in the text of a lecture hosted by the Federal Reserve Bank of Dallas.