Weber attacks international financial safety net concept

Axel Weber, the former president of the Bundesbank, on Monday warned against replacing ad hoc swap lines with a more permanent liquidity mechanism headed by the International Monetary Fund (IMF), saying it risked creating further moral hazard.

At his Per Jacobsson Foundation Lecture entitled: 'The IMF and the International Monetary System: Lessons from the Crisis', delivered in Washington, DC, Weber said central banks' reaction to the systemic crisis had been "swift" and "well co-ordinated", and