FRANKFURT Nov 23 Monetary policy is not a
panacea and overburdening it is not the way to produce a lasting
basis for strong and stable growth, European Central Bank
policymaker Jens Weidmann said on Friday.
"If the house is burning, putting out the fire has to be the
most pressing concern," he said in a keynote speech to a banking
conference before adding that policymakers must beware that they
are "not unwittingly preparing the ground for the next fire."
"Overburdening monetary policy ... cannot provide a lasting
basis for strong and stable growth," Weidmann said. "The crisis
has blurred the boundaries between monetary policy and fiscal
"Monetary policy is not a panacea," he added.
(Reporting by Eva Kuehnen and Sakari Suoninen, writing by Paul