Economics
ECB’s Knot Warns Against Creating Another ‘Central Bank Put’
- Policy maker says fiscal policy must take some of the strain
- Knot agrees ECB might not use all of its pandemic program
Klaas Knot
Photographer: Zach Gibson/BloombergThis article is for subscribers only.
Europe shouldn’t lean too heavily on monetary policy as the main line of defense against the economic fallout from the virus, Dutch central bank Governor Klaas Knot said.
The European Central Bank policy maker said a strong fiscal response would combat the perception that almost everything hangs on narrower measures -- such as massive ECB bond purchases -- that could have unintended side effects on the economy if left in place for too long.