Posen calls for international stimulus

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The Independent Online

The European Central Bank and the US Federal Reserve should overcome their fears about damaging their reputations and buy significant quantities of government bonds to help stimulate their economies, according to Adam Posen, an external member of the Bank of England's interest rate setting committee.

In an article written for the International Herald Tribune, Mr Posen said: "In my opinion we can go further... Central banks and governments can engage in forms of coordinated action that will target the burden of past debts that is hanging over the global economy."