ECB cannot tailor monetary policy for individual countries

Commentary feature by Jürgen Stark, a member of the executive board of the European Central Bank.

The European Central Bank’s determination to press ahead with interest rate rises was defended by Mr Stark even after the escalation of the eurozone debt crisis in Ireland and Portugal, two of the region’s weakest members.

He argued that a 'one size fits all' monetary policy ultimately benefits all members. He said the eurozone’s weakest countries received exceptional support on a scale not possible if they were not part of Europe’s monetary union.

ESO: Background information: EU agrees incomplete financial package http://www.europeansources.info/record/eu-agrees-incomplete-financial-package/

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