Bundesbank disagrees with more quantitative easing by ECB

According to financial newspaper ‘Wall Street Journal’, the new quantitative easing measures announced Thursday by European Central bank (ECB) President Mario Draghi are opposed by the German central bank, Bundesbank. The paper cites a source from the German bank as saying that the new round of money printing will create a vicious circle of high expectations and disappointments in the market. The same source said that the head of the Bundesbank, Jens Weidmann was strongly opposed to extending the bonds buying program by 20bln Euros, from 60bln to 80bln. Sources with knowledge of the ECB point out that some board members of the European institution are concerned that this strategy will be ineffective after so many years.