Central banks therefore needed to stand firm against political influence and stick to keeping inflation in check.
“It is a fallacy to think that loose monetary policy can solve the large structural problems we are facing. Central banks must not become the victims of their own success and should not become overburdened.”
He highlighted the heavy debts burdening key developed economies alongside structural problems and growth worries, but spent the core of the speech calling for central banks to stand firm against political interference.
“The global financial crisis is far from over,” Stark warned in a speech on the role of monetary policy.