“Politicians must act to combat Europe’s financial crisis because central banks can’t do it alone, Jens Weidmann, the president of the Bundesbank, Germany’s central bank, said Tuesday.
“We face a structural crisis in Europe. We face a crisis of confidence, and this can only be overcome if politicians really tackle the root causes,” Weidmann told CNBC in an interview.
“Monetary policy can only buy time at best. … In that sense, I am a bit concerned about some of the expectations around the power and potential of monetary policy actions.”
Weidmann said central bank actions had blurred the line between monetary and fiscal policy during the crisis.
“We should quickly revert to our core business, which is monetary policy,” he said….”
