Fed economist condemns ECB for lack of QE

Anna Fedorova
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A senior Federal Reserve economist has criticised the European Central Bank for resisting further monetary stimulus.

In a paper written in July, Robert Hetzel, the bank's senior economist, said the excess debt is caused by a collapse in growth and not the eurozone crisis itself, despite what the ECB thinks. The Telegraph quoted him writing: "The ECB lacks a coherent strategy for creating the monetary base required to sustain the money creation necessary for a growing economy." Hetzel called for quantitative easing across the board, saying the European bank should buy small business loans and "packages of government debt", including German bunds. "Most important, the ECB needs to start by recognis...

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