ECB's Weidmann: Reiterates risk that gov't and private sector get used to cheap money, ECB ready to act if needed
- Reiterates low interest rates have side effects that increase the longer rates stay low.
- Reiterates deflation risk is very limited.
- Skeptical of central banks trying to force banks to lend to certain sectors and regions.
- If the ECB does more LTROs, it should discourage carry trades related to sovereign debt. >- Stress test should consider sovereign bond risk.
- Euro crisis not over yet.
- Bitcoin not an alternative to money
- Reiterates deflation risk is very limited.
- Skeptical of central banks trying to force banks to lend to certain sectors and regions.
- If the ECB does more LTROs, it should discourage carry trades related to sovereign debt. >- Stress test should consider sovereign bond risk.
- Euro crisis not over yet.
- Bitcoin not an alternative to money