ECB won't burst bubbles says Issing

Otmar Issing said Wednesday 18 February that the ECB would not use monetary policy to burst speculative bubbles in eurozone asset prices as such a move would have a negative effect on the real economy.

"Even if the case of extreme high valuations of assets, a situation in which most observers would agree that the prevailing level of asset prices is not sustainable, there are strong arguments that a central bank should not try to 'prick the bubble'," Issing said.

"The interest-rate increase req