Slash ECB rate to zero, says economist

THE European Central Bank (ECB) has been urged to slash interest rates to zero by a leading economist.

The man credited with predicting the financial meltdown, New York University economist Nouriel Roubini, also said the ECB should expand government bond purchases to offset the recessionary effects of euro-area austerity measures.

“That has to be the policy mix: tight fiscal, but much more easy money, looser monetary policy, more quantitative easing and also a weakening of the euro,” he said.