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A second US stimulus package is likely to do more harm than good, as it would have to be financed by increasing the already ballooning public debt, Hans Redeker, global head of foreign exchange strategy at BNP Paribas, told CNBC Tuesday.
Laura D'Andrea Tyson, a member of the panel advising President Barack Obama on dealing with the economic crisis, said the US must prepare for a second stimulus if it is necessary. Tyson thinks the initial $787 billion
But this is not likely to be welcomed by some investors, Redeker said.
"If they would come up with another stimulus package which would be debt funded and you would have simultaneously very easy monetary conditions…. at some point, confidence will be lost, people would have the idea that the US is trying to inflate out of its problem," he told "Squawk Box Europe."
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"The US needs to seek international coordination to avoid such kind of outcome. What we now need is stimulus outside the US," Redeker added.
Europe and current account surplus countries should be the ones stimulating their economies, he said.
"The monetary policy approach in Europe, I guess that is still lagging," said Redeker, who added that a second US stimulus may endanger credit ratings.
"If we go down that road, we are losing this fight," he said.
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