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MNI (London)
By Silvia Marchetti
     ROME (MNI) - Monetary policy normalisation will see a shift in
responsibility for increasing growth and for maintaining fiscal sustainability
away from the European Central Bank onto member states and common European Union
initiatives, Tuomas Valimaki, Bank of Finland's chief economist, told MNI in an
exclusive interview. 
     Valimaki, who also serves as a member of the ESCB's Monetary Policy
Committee, said that the ECB's extreme prudence during the monetary policy
unwinding phase and in its forward guidance strategy would limit the rise of
instability risks across the Eurozone once the asset purchases program
terminates and interest rates are raised.
     According to Valimaki, co-author of recently a published book 'Central
Banking in Turbulent Times', some of the burden placed on the ECB's shoulders in
returning to unconventional measures and thus blurring the boundaries between
fiscal and monetary policies, "will hopefully be lifted by the initiatives there
are for deepening of EMU".
     This includes the completion of the Banking Union, efforts to improve the
functioning of the capital markets across the EU and strengthening the capacity
of the European Stability Mechanism (ESM) to act as a buffer in crises, he said.
--MNI London Bureau; tel: +44 203-586-2225; email:
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