Issing: Govts must deal with growth differentials

European Central Bank chief economist Otmar Issing said in a speech Friday 20 May euro zone growth differentials must be dealt with by national economic policies rather than by the ECB's interest rate policy.

'The persistence of these differentials in the euro area is...the product, at least to some extent, of misaligned national policies, wage dynamics not linked to productivity developments, and structural inefficiencies,' he said in a speech.

'National economic policies are better instruments

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