An extremely important interview with ECB board member Joerg Asmussen was carried in the Frankfurter Rundschau recently. Below is a translation with key bits highlighted. Afterward I will interpret his remarks in light of ongoing speculation about ECB policy. The most important part is his explanation of redenomination risk premia and what the ECB is prepared to do to eliminate them.
ECB Director Joerg Asmussen campaigns for Greece's remaining in the euro zone and defends bond purchases by the ECB against criticism from Bundesbank President Weidmann. A Greek exit from the currency union would be manageable, but expensive.
The fear of a euro breakup is growing. Later this week, German Chancellor Angela Merkel (CDU) confers with the French President and the Greek government head about th...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.