FRANKFURT: Bundesbank President Jens Weidmann said on Monday that high debt and the resulting tax burden for companies and households could dampen growth in the euro zone, adding that this could not be tackled by making monetary policy more expansionary.
"The fact is that the factors named are all factors that burden growth and they cannot be eliminated by means of a monetary policy that is stability-oriented but more expansionary," he said in a speech to be delivered at a conference in Frankfurt.
Weidmann also said that monetary policy could help bring about a return to sustainable and solid growth, adding that this could be best achieved by ensuring currency stability in the long-term.
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