Bloomberg News

Schaeuble Says Europe Won’t Take ‘Easy Way’ of ‘Cheap Money’

October 12, 2011

Oct. 12 (Bloomberg) -- German Finance Minister Wolfgang Schaeuble said that Europe won’t take the “easy way” of “cheap money” to deal with its crisis.

“It has to be clear that we won’t go the easy way of using the printing press or betting on inflation,” Schaeuble said today in remarks in Berlin. “We mustn’t go down the path of cheap money.”

“We can study on the other side of the Atlantic that another way -- even with a totally different economic dynamism - - has obviously reached its limits,” he said.

“It is not a pure coincidence that Lehman Brothers had its origins in the U.S. with the subprime crisis. Behind that was the political attempt to solve important tasks of social policy -- wider wealth distribution, integration of the socially- underprivileged -- by means of monetary policy. This is a dangerous attempt. We can’t evade the difficult political processes by taking the monetary policy short-cut,” said Schaeuble.

To contact the reporter on this story: Rainer Buergin in Berlin at rbuergin1@bloomberg.net

To contact the editor responsible for this story: Leon Mangasarian at lmangasarian@bloomberg.net


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