Article: West Germany Rejects Looser Monetary Policy

West Germany's government today rejected appeals by the United States, other western allies and its own top private economists to cut taxes earlier than planned to spur the nation's lackluster economic growth and thus help boost the world economy.

The joint statement by the economics and finance ministries came a day after Economics Minister Martin Bangemann ruled out trying to pump up the West German economy through a major shift to a looser monetary policy and lower interest rates.

The West German statements appeared to remove any remaining possibility that Bonn would adopt significantly more expansionary economic policies in the wake of last month's worldwide stock market plunge.

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