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ECB's Weidmann Says Central Banks May Need to Tackle Imbalances
Jens Weidmann, a top candidate to lead the European Central Bank next year, said policy makers must be willing to act if needed to prevent financial imbalances. While arguing that monetary officials should have only one mandate -- price stability -- and generally let national authorities in the euro area handle tasks such as reining in asset prices, he acknowledged that those macroprudential tools are still poorly understood. “Should monetary policy remain completely passive if financial imbalances were to build up? In my view, this would be a mistake,” Weidmann, who heads Germany’s Bundesbank, said at a ... (full story)