ECB May Consider Quantitative Easing, says Austrian Central Bank Governor in Exclusive Interview

Ewald Nowotny, Governor of the Austrian Central Bank, discussed the current financial crisis and its implications for Europe in a wide ranging exclusive interview in Salzburg. Discussing the potential need for increased interest rate reductions and longer lending periods on ECB loans, Governor Nowotny also suggested a potential move beyond traditional ECB practices, including the purchasing of assets, a practice known as credit easing or quantitative easing. Speaking at Session 462, The Search for Stability: Financial Crisis, Major Currencies and a New Monetary Order, Governor Nowotnys suggest that the ECB is considering new kinds of technical instruments in dealing with the crisis fallout, but may lack the political will needed to implement such measures.