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USA: 'Expansionary monetary and debt finance fiscal policy caused crises' - Schaeuble01:39

USA: 'Expansionary monetary and debt finance fiscal policy caused crises' - Schaeuble

United States, Washington, DC
April 16, 2015 at 20:45 GMT +00:00 · Published

German Finance Minister Wolfgang Schaeuble said that he believes that "expansionary monetary policy and debt finance fiscal policy" were the main causes of "financial and debt crises that have occurred in recent decades," like that in the Eurozone involving Greece at the moment, while speaking at The Brookings Institute in Washington, Thursday. He went on to say that macroeconomics instruments no longer work the way they used to, citing Japan's attempt "to use monetary and fiscal policy as a way to create growth artificially" as an example of how this fails.

He also said that "The Eurozone's economy is growing again and that this year every country in the Eurozone and the EU is expected to post positive growth," and that sustainable growth will not be realised by "taking on more debt" and "pursuing ever more expanding monetary policies. Such thinking, Schaeuble asserted, leads to the "unending cycle of credit booms and busts."

USA: 'Expansionary monetary and debt finance fiscal policy caused crises' - Schaeuble01:39
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German Finance Minister Wolfgang Schaeuble said that he believes that "expansionary monetary policy and debt finance fiscal policy" were the main causes of "financial and debt crises that have occurred in recent decades," like that in the Eurozone involving Greece at the moment, while speaking at The Brookings Institute in Washington, Thursday. He went on to say that macroeconomics instruments no longer work the way they used to, citing Japan's attempt "to use monetary and fiscal policy as a way to create growth artificially" as an example of how this fails.

He also said that "The Eurozone's economy is growing again and that this year every country in the Eurozone and the EU is expected to post positive growth," and that sustainable growth will not be realised by "taking on more debt" and "pursuing ever more expanding monetary policies. Such thinking, Schaeuble asserted, leads to the "unending cycle of credit booms and busts."