From the touch line he urges the European Central Bank to act as lender of last resort.
Notorious NYU economist Nouriel Roubini gave a talk in Dubai on Tuesday where he warned that a sustained run-up in oil prices could tip some advanced economies into recession, as he warned that the European Central Bank and the Bank of England could be about to make a big mistake by raising interest rates and that the U.S. was relatively safe from a double-dip.
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Overseas, Jean-Claude Trichet, head of the European Central Bank, said he welcomed the pledge of European leaders to publish the results of their stress tests on banks and indicated that the need to buy troubled government bonds in order to calm markets appears to be diminishing.
He said news of the European Central Bank deciding to print money or the Federal Reserve embarking on a new liquidity program could be the spark that lifts prices.
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In addition to his role as Bank of Canada governor, Carney is also the incoming chairman of the Financial Stability Board, where he takes over from new European Central Bank President Mario Draghi.
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The European Central Bank, he said, had performed "heroically" in buying time for the eurozone's governments.
But after the fuss France made to ensure he will succeed Wim Duisenberg at the European Central Bank, that is hard to imagine.
This past week, the head of the European Central Bank, Mario Draghi said he would save the Euro at all costs.
Also next week, a new chief for the European Central Bank will be installed and he will give his first official comments to the world.
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Tuesday European Central Bank President Mario Draghi said he is not attending the Jackson Hole retreat, but Putnam said not to read too much into that.
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The European Central Bank and European Commission would hate this, but they could not stop it, he argues.
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He said that by the European Union, and the European Central Bank taking these actions, it would provide some time to help the governments of Europe come up with a solution.
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He should accept that Spain will need the support of the European Central Bank which means submitting the country to an official rescue programme.
Adding to the gloomy mood, European Central Bank governing council member Ewald Nowotny said he didn't see the euro-zone economy improving significantly in the near future.
Traders and investors are awaiting the September 6 monthly press conference of European Central Bank president Draghi, at which time he is expected to unveil some new initiatives to support financially troubled EU countries.
However German Finance Minister Wolfgang Schauble said he "regretted" the vote and that Cypriots must understand that European Central Bank aid was contingent on a reform programme.
The Cypriot president said if he hadn't accepted the tax on bank deposits, the European Central Bank would have stopped providing emergency funds to the country's top two lenders which would have led to the collapse of the banking system, the bankruptcy of thousands of small businesses, massive job losses, and ultimately the country's exit from the euro.
Despite Mr Stournaras' comments, European Central Bank (ECB) president Mario Draghi said later he was unaware that an extension had been agreed.
In a hearing before the European Parliament, he defended the ECB's decision, saying the central bank was only acting within its mandate not to fund insolvent financial institutions.
He said it was the Cypriot government, the European Commission and the European Central Bank that had decided on the levy terms and that "they now must explain this to the Cypriot people".
He was preceded by Prime Minister Lucas Papademos, a former banker and European Central Bank vice president, also an unelected politician who was sworn in as head of an interim government on November 11, 2011, after four days of political wrangling.
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It was the job of politicians, not the European Central Bank (ECB), to resolve these problems, he said.
Reports Tuesday said European Central Bank president Mario Draghi will not attend the Jackson Hole Fed meeting because he is too busy.
Gold could keep rallying for a while, Lesh said, although he also anticipates a bout of profit taking at some point now that a highly anticipated FOMC meeting and European Central Bank willingness to buy bonds have both occurred.
Mr Fabius also insisted that the European Central Bank (ECB) has "room for manoeuvre" on monetary policy, implying that he believes the Bank could and should cut interest rates further to support the 12 economies in the eurozone.
The European Central Bank unleashed its open-ended bond buying program after Mario Draghi promised to do all he can to save the monetary union, and Fed chief Ben Bernanke announced his version of open-ended bond purchases, dubbed QE3.
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