Aggravation

clipped from www.ft.com Unconventional monetary policies being pursued by the world’s main central banks could aggravate rather than ease the economic crisis, Angela Merkel, Germany’s chancellor, suggested on Tuesday. Her surprisingly strong attack on the US Federal Reserve, the Bank of England and the European Central Bank was remarkable coming from a leader who had so far scrupulously adhered to her country’s tradition of never commenting on monetary policy. “What other central banks have been doing must be reversed. I am very sceptical about the extent of the Fed’s actions and the way the Bank of England has carved its own little line in Europe,” she told a conference in Berlin. “Even the European Central Bank has somewhat bowed to international pressure with its purchase of covered bonds.” She added: “We must return to independent and sensible monetary policies, otherwise we will be back to where we are now in 10 years’ time.”