ECB can set policy independently of Fed: Villeroy

NUSA DUA, Indonesia (Reuters) – The European Central Bank can set its own monetary policy independently of the Federal Reserve, ECB policymaker Francois Villeroy de Galhau said on Sunday.

“Helene Rey’s famous paper in 2013 argued that floating exchange rates are not sufficient to give countries independence from U.S. monetary policy if they have an open capital account,” Villeroy said at a conference on the sidelines of the International Monetary Fund’s annual meetings.

“I would contest the generality or starkness of her dilemma. For example, I think the euro area can determine its own course.”

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