ECB's Weidmann - "monetary policy is not a panacea"

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November 23, 2012 11:14 PM EST

Monetary policy is not a panacea and overburdening it is not the way to produce a lasting basis for strong and stable growth, European Central Bank policymaker Jens Weidmann said on Friday.

"If the house is burning, putting out the fire has to be the most pressing concern," he said in a keynote speech to a banking conference before adding that policymakers must beware that they are "not unwittingly preparing the ground for the next fire."

"Overburdening monetary policy ... cannot provide a lasting basis for strong and stable growth," Weidmann said. "The crisis has blurred the boundaries between monetary policy and fiscal policy."

"Monetary policy is not a panacea," he added.

(Reporting by Eva Kuehnen and Sakari Suoninen, writing by Paul Carrel)

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