German Eco Advisers: ECB should significantly tighten monpol to adapt it to eco developments

A group of German government advisers expressed their view on ECB’s monetary policy program in its German Economic Advisers Annual Report released on Wednesday.

Summary:

Market interest rates suggest ECB should significantly tighten monetary policy (monpol) to adapt it to economic developments.

Risks to financial stability also speak for normalization of monetary policy.

ECB should publish a strategy for monetary normalization to reduce the risk of volatility in financial markets.

ECB should quickly reduce its asset purchases and end the programme earlier.