ECB’s Coeure: A too protracted period of asset purchases may cause financial imbalances
Key highlights (via Reuters) from the panel contribution by Benoît Cœuré, Member of the Executive Board of the ECB, at the conference on Rethinking Macroeconomic Policy IV, Washington D.C., 12 October 2017:
- Central banks risk causing financial bubbles if they keep buying bonds for too long.
- We need to be mindful of risks to financial stability.
- A too protracted period of asset purchases, for example, may cause financial imbalances to build up with potentially adverse consequences for price stability.