Stark warns over G20 SDR move

European Central Bank Executive Board member Juergen Stark yesterday criticized the decision made at the G20 summit to boost the IMF's Special Drawing Rights (SDRs) as ill thought through and potentially inflationary.

Stark said the decision could spark inflationary problems by creating "helicopter money".

Last week leaders from the Group of 20 wealthy and emerging economies agreed to support a general allocation of $250 billion worth of International Monetary Fund's SDRs - options to tap IMF funds - alongside other measures to boost the Fund's firepower.