ECB’s Weidmann calls helicopter money absurd, says monetary policy has gone too far

European Central Bank (ECB) governing council member Jens Weidmann said Wednesday the monetary policy has gone too far and that calls for unconventional experiments like ‘helicopter money’ are absurd.

Weidmann, a renowned hawk and Bundesbank chief, told the Finance Forum Lichtenstein that there had been unanimous agreement among the Governing Council that further action was needed at the March policy meeting.

Key quotes

Overall the decisions went too far in my view and the comprehensive package of measures did not convince me

The current, admittedly difficult, monetary policy considerations must not underestimate the risks and overestimate the powers of monetary policy

Too early to say if core inflation fall permanent

Government bonds purchases should be an emergency tool

Says must be flexible about the time frame to raise inflation, should not hit target as soon as possible at any cost