Bofinger: The ECB needs to define a clear exchange rate
THE European Central Bank should "define a clear exchange rate target and defend it", according to Peter Bofinger, an economic adviser to German Chancellor Angela Merkel. The ECB should follow the example of Swiss National Bank, he added.
Mr Bofinger said exchange-rate moves were largely detached from macroeconomic facts, which justified intervention by central banks. The strong euro was jeopardising efforts by crisis states such as Ireland to reduce labour costs and improve competitiveness, he said.