The eurozone crisis is no longer the main risk for the global economy, German Finance Minister Wolfgang Schaeuble said on Saturday, adding that a "relatively high level of liquidity" could cause problems. Speaking after a meeting of Group of Seven finance officials, Schaeuble said, "of course we had particularly intense discussions with our Japanese colleagues...we told them there are consequences which we can see already."
Policymakers previously voiced concern that Japan is engineering an export-led recovery and that a weaker yen could hinder other regions' ability to grow. "Finance ministers told central bank governors that we are increasingly concerned about the relatively high level of liquidity," Schaeuble said. Bundesbank President Jens Weidmann reiterated that monetary policy could not tackle structural problems and said the longer the period of low interest rate continues the greater the stability risks.