Image: APA/HANS PUNZ
“Well-intentioned political reactions to financial market turmoil can trigger future financial stability risks,” he said at the 50th National Bank Economic Meeting.
Since taking office in 2019, Holzmann has been an advocate of tighter monetary policy. Even if the unconventional monetary policy may have partially strengthened the resilience of the euro area, “these measures have not eliminated the actual weaknesses that caused the conventional instruments to no longer work on their own,” said Holzmann.
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