A top European Central Bank policymaker has called for “quantitative easing” to be used to boost the eurozone economy if deflation risks emerge across the 17-country region.
The comments by Lorenzo Bini Smaghi, ECB executive board member, are the strongest indication yet that the central bank would expand its tools to prevent a disastrous economic slump in continental Europe.
In an interview with the Financial Times, Mr Bini Smaghi said: “I do not understand the quasi-religious discussions about quantitative easing.”
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