ECB Cannot 'Run The Economy Hot' To Create Jobs Coeure

FRANKFURT, May 19 (Reuters) - The European Central Bank cannot risk running “the economy hot” to support employment once inflation stabilises at its target of almost 2 percent, ECB Executive Board member Benoit Coeure said on Friday.

“Should we reach a point where the path of inflation is expected to be self-sustaining, but long-term unemployment remains high, there should be no doubt as to how I would decide regarding our policy stance,” Coeure said in Geneva.

“Monetary policy cannot ‘run the economy hot’ as insurance against labour market risks.”

He also added that so far there is no evidence that a prolonged period of high unemployment has increased structural unemployment in the euro zone. (Reporting By Francesco Canepa; Editing by Balazs Koranyi)


Trending Hairstyles

Source : http://www.reuters.com/article/ecb-policy-inflation-idUSF9N1H7000

ECB cannot "run the economy hot" to create jobs: Coeure
ECB must factor big labor market slack into policy: Coeure
PRESENTING: The most important charts in the world from the brightest minds on Wall Street
Week Ends With Fitch Threatening Massive Euro Downgrade
Best Quotes of July 2008
Beaufort Securities Breakfast Alert: Ferrum Crescent Limited, Pennon Group plc, Premier African Minerals Ltd, Savannah Resources Plc, ValiRx Plc
ECB to announce in Oct plans to reduce QE; buy bonds through June 2018: Reuters poll
ECB cannot "run the economy hot" to create jobs: Coeure
ECB must factor big labour market slack into policy - Coeure