HELSINKI, Aug. 28 (Xinhua) -- The European economy has passed its toughest time and the pressure is being transferred to the developing countries, the governor of Finnish Central Bank said on Wednesday.
Erkki Liikanen, who is also a member of the European Central Bank Governing Council, made the remarks after he came back from the world central bankers' annual conference in Jackson Hole, U.S..
He told Helsinki News that the financial crisis in Europe is over, as the current accounts in the troubled countries, such as Greece and Spain, have recently shown surpluses.
"Their trade deficits have decreased, even though the adjustment process is still ongoing", he added.
Liikanen pointed out that the European Central Bank (ECB) played a key role in strengthening banking supervision, which could be one of the important elements that helped overcome the debt crisis.
The fate of Europe was no longer the central topic, and the greatest concern of the central bank governors was the possible impact of U.S. Federal Reserve (Fed)'s tightening of monetary policy on the developing markets.
According to Liikanen, the general view was that the weakened exchange rates in emerging economies were one of the effects of the tightened monetary policy.
He suggested that the most important thing for the developing countries is to know how Fed will operate in the future.
In addition, Liikanen said the ECB would keep interest rates at record low for a longer period of time, a decision made based on the inflation outlook and the sluggish money supply.
"It is important for the ECB's efforts to consolidate the markets", he said.
From Aug. 23 to 24, some central bank governors from around the world gathered in Jackson Hole las weekend. The theme of the meeting was The Global Calculus of Unconventional Monetary Policies.