As the former head of the Bank of England, Mervyn King has a lot to say about monetary policy and the role of central banks when it comes to post-2008 economic recovery. That role has never been more closely monitored than today with the onset of asset purchases by the European Central Bank. Those measures appear to be having a positive impact on growth and exports for the region. But even King insists there is a limited role for central banks to play. The other key for European recovery, as he told us in an interview, is that Europe needs to find a balanced economy in which there is not such wide disparity between borrowers like Greece and savers like Germany.
“I think government’s have got to recognize that if they simply leave it to central banks, all that central banks can do is try to take us back to 2006. We don’t want to go back to 2006. We want to go back to a better balanced economy both domestically and internationally.”
Watch the full video above.