Statement of Professor Fuest, President of the Centre for European Economic Research (ZEW), on the ECB decision

Professor Fuest, President of the Centre for European Economic Research (ZEW), comments today's ECB decision: "The ECB was right to decide against an extension of monthly asset purchases. The effectiveness of extending this policy in providing stimulus is limited. Highly indebted households and firms will not invest and consume more if the ecb buys more assets and creditors are increasingly irritated by ever lower interest rates and may cut back their spending too. Bringing the Euro exchange rate down further to boost exports will also be difficult. Monetary policy in the Eurozone is reaching its limits."

For further information please contact

Prof. Dr. Clemens Fuest, Tel.: 0621/1235-100,  E-mail: fuest@zew.de