ECB's Gonzalez-Paramo Says Inflation Expectations are Anchored

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Published: Mon, 23 Feb 2009 13:37:09 +0100

ECB's Gonzalez-Paramo Says Inflation Expectations are Anchored

(CEP News) - European Central Bank policy has managed to anchor inflation expectations, said executive board member Jose Manuel Gonzalez-Paramo.

Speaking in Madrid on Monday, he said the central bank's liquidity policy has become a non-conventional tool, but that the bank's main goal remains price stability.

On reaction to the global financial crisis, Gonzalez-Paramo said the ECB's balance sheet has doubled, while governments have acted quickly to support European banks.

However, he said governments have to be ready to exit deficits.

By Megan Ainscow, mainscow@economicnews.ca, edited by Stephen Huebl, shuebl@economicnews.ca

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