Central Banks
ECB Needs Its Crisis Tools to Enforce Policy, IMF Official Says
- Kammer says you need instruments to deal with stress
- Germany’s Lindner recently cast doubt on legality of TPI
Alfred Kammer
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank must have crisis tools on hand such as its TPI bond-buying program even if they aren’t needed now to help France, according to a senior International Monetary Fund official.
“In a monetary union you need to have the instruments available in order to deal with stress,” Alfred Kammer, director of the institution’s European department, said in an interview on Tuesday at the ECB’s annual retreat in Sintra, Portugal. “You want to make sure that your policy gets traction everywhere.”