Fed’s Fischer Says ‘Very Likely’ EMU ‘Will Survive This Crisis
2015-05-21 18:00:00.16 GMT
By Vivien Lou Chen
(Bloomberg) -- Fed Vice Chairman Stanley Fischer, appearing
at dinner hosted by ECB Pres. Mario Draghi, says continuation of
“courageous and effective monetary policy” in Europe “could
do even better if accompanied by an expansionary fiscal
policy.”
* “Very likely that EMU -- the Economic and Monetary Union --
will survive this crisis,” Fischer said in text of speech
in Sintra, Portugal
* Longer run, “EMU will not survive unless it also brings
prosperity to its members”
* Longer run, “EMU will not survive unless it also brings
prosperity to its members”</li></ul>
* With decision to implement QE, “it became clear” ECB has
capacity to implement monetary policy at zero lower bound
and succeed
* Most important future challenge will require increasing
productivity growth throughout Europe
* Challenge is one faced by “entire developed world”
* Challenge is one faced by “entire developed world”</li></ul>
* Best way to deal with future crises may require developing
better mechanism to ensure member states run responsible
policies
* “Great deal of thought” may also be needed on how to
deal with crises “that could most easily be solved by
an exchange rate adjustment”
* “Great deal of thought” may also be needed on how to
deal with crises “that could most easily be solved by
an exchange rate adjustment”</li></ul>
* NOTE: Fischer doesn’t address U.S. monetary policy/economy
in prepared remarks
* NOTE: Fischer is former governor from Bank of Israel, joined
Fed board last yr
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Vivien Lou Chen in San Francisco at +1-415-617-7078 or
vchen1@bloomberg.net
To contact the editors responsible for this story:
James Holloway at +1-212-617-4454 or
jholloway8@bloomberg.net
2015-05-21 18:00:00.16 GMT
By Vivien Lou Chen
(Bloomberg) -- Fed Vice Chairman Stanley Fischer, appearing
at dinner hosted by ECB Pres. Mario Draghi, says continuation of
“courageous and effective monetary policy” in Europe “could
do even better if accompanied by an expansionary fiscal
policy.”
* “Very likely that EMU -- the Economic and Monetary Union --
will survive this crisis,” Fischer said in text of speech
in Sintra, Portugal
* Longer run, “EMU will not survive unless it also brings
prosperity to its members”
* Longer run, “EMU will not survive unless it also brings
prosperity to its members”</li></ul>
* With decision to implement QE, “it became clear” ECB has
capacity to implement monetary policy at zero lower bound
and succeed
* Most important future challenge will require increasing
productivity growth throughout Europe
* Challenge is one faced by “entire developed world”
* Challenge is one faced by “entire developed world”</li></ul>
* Best way to deal with future crises may require developing
better mechanism to ensure member states run responsible
policies
* “Great deal of thought” may also be needed on how to
deal with crises “that could most easily be solved by
an exchange rate adjustment”
* “Great deal of thought” may also be needed on how to
deal with crises “that could most easily be solved by
an exchange rate adjustment”</li></ul>
* NOTE: Fischer doesn’t address U.S. monetary policy/economy
in prepared remarks
* NOTE: Fischer is former governor from Bank of Israel, joined
Fed board last yr
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Vivien Lou Chen in San Francisco at +1-415-617-7078 or
vchen1@bloomberg.net
To contact the editors responsible for this story:
James Holloway at +1-212-617-4454 or
jholloway8@bloomberg.net