Schaeuble Rejects ECB as Lender of Last Resort, Joint Bonds
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German Finance Minister Wolfgang Schaeuble renewed his rejection of joint euro region bond sales and said giving the European Central Bank the role of lender of last resort wouldn’t calm markets permanently.
“If the central bank finances government debt, it’s a modern form of the old bad habit that if the government doesn’t have enough money, it prints money,” Schaeuble said today in Berlin. “If we start doing this, markets will calm down for some time. But then they realize that the European currency is not a stable currency” in the long run.