Jan. 24 (Bloomberg) -- European Central Bank Executive Board Member Jose Manuel Gonzalez-Paramo said there is no need to embark on quantitative easing in the euro area.
The ECB’s government bond purchase program “has nothing to do with QE,” Gonzalez-Paramo said at the Bloomberg Sovereign Debt Crisis Conference hosted by Bloomberg Link in New York today. “It’s targeting excessive volatility in the markets.”
“Volatility in government bonds, if not contained, could end up as losses in the case of the banks,” he said. “It has not the purpose of depressing the entire yield curve or to create money.”
To contact the reporter on this story: Jeff Black in Frankfurt at firstname.lastname@example.org
To contact the editor responsible for this story: Gabi Thesing at email@example.com