ECB’s Mersch – There should not be beggar-thy-neighbor policies

Yves Mersch, executive board member of ECB’s policymaking body warned today about the undesirable effects of competitive devaluation of currencies on the Eurozone economy.

Key quotes

Everyone is living up to the promises of how the international monetary system is being run.

And that means they should not be competitive devaluation. There should not be beggar-thy-neighbor policies and the areas that (are) already more on the safer side as what concerns growth and inflation should not try to talk down their currencies.