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Tumpel-Gugerell Says Excessive Domestic Focus May Worsen Crises

European Central Bank Executive Board member Gertrude Tumpel-Gugerell said an excessive focus on domestic economies may endanger the global financial system and exacerbate future crises.

“The economy is global, so policies cannot remain local,” Tumpell-Gugerell said in a speech in Zurich today. “An excessive focus on the domestic economy may exacerbate global economic and financial imbalances, ultimately making future global crises more likely and more severe. This is all the more true for systemically relevant countries, which have a special obligation for international cooperation.”

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