German Finmin-eurozone crisis no longer main risk to global economy

AYLESBURY, England Sat May 11, 2013 10:32am EDT

AYLESBURY, England May 11 (Reuters) - The euro zone crisis is no longer the main risk for the global economy, German Finance Minister Wolfgang Schaeuble said on Saturday, adding that a "relatively high level of liquidity" could cause problems.

Speaking after a meeting of Group of Seven finance officials, Schaeuble said, "of course we had particularly intense discussions with our Japanese colleagues...we told them there are consequences which we can see already."

Policymakers previously voiced concern that Japan is engineering an export-led recovery and that a weaker yen could hinder other regions' ability to grow.

"Finance ministers told central bank governors that we are increasingly concerned about the relatively high level of liquidity," Schaeuble said.

Bundesbank President Jens Weidmann reiterated that monetary policy could not tackle structural problems and said the longer the period of low interest rate continues the greater the stability risks.

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Comments (1)
satori23 wrote:
Thanks to Mr Schaeuble and complementary visionaries Europeans that still have purchasing power are now discovering that it’s cheaper to buy durable good than its part. A true miracle worker…

”An observer crossing a black hole event horizon can calculate the moment they have crossed it, but will not actually see or feel anything special happen at that moment.”

Cheers,

May 12, 2013 6:46am EDT  --  Report as abuse
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