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Who is the next chief of the Deutsche Bundesbank?

File Photo: Deutsche Bundesbank Governor Jens Weitmann at the Old Opera House in Frankfurt, Germany, November 22, 2019.Reuters / Ralforlowski / File Photo

November 25, 2021

Frankfurt (Reuters) – The Social Democratic Party of Germany, a senior partner of the tripartite coalition forming the new government, will elect a new head of the central bank, the Deutsche Bundesbank, by the end of this week.

The Social Democratic Party, the Greens, and the Liberal Democratic Party have reached an agreement 16 years later that the Social Democratic Party Olaf Scholz will replace the conservative Angela Merkel as prime minister.

Deutsche Bundesbank Governor Jens Weidmann resigned on December 31, five years before the official end of the second term, after expressing almost useless opposition to the European Central Bank’s monetary easing policy for a decade.

Below is a list of potential candidates to take over from him.

Isabelle Schnabel

Schnabel is a member of the European Central Bank’s board of directors, making the switch to the unprecedented Deutsche Bundesbank.

During his first two years as a member of the ECB’s board, Schnabel has broken down Germany’s opposition to bond purchases and negative interest rates and defended the ECB from critics in his home country.

She recently made a hawkish note saying inflation may turn out to be higher than the ECB currently expects.

Joachim Nagel

Nagel, a Social Democrat who worked for the Deutsche Bundesbank for 17 years, moved up the ranks to become a board member before resigning in 2016.

At the German Central Bank, he was in charge of markets and information technology and did not regularly comment on monetary policy.

He is currently the Deputy Head of the Banking Division of the Bank for International Settlements and joined in 2020 after working for the German State Bank KfW for four years.

He has a degree in economics.

MARKUS BRUNNER MEIER

A professor at Princeton University is probably the most international candidate on the list and has done most of his research and education in the United Kingdom and the United States.

He co-authored an academic paper with ECB Chief Economist Philip Lane. This includes those who supported the creation of “synthetic” safe assets for the euro area and received a frosty welcome from the Deutsche Bundesbank.

In his 2017 book, The Battle of the Euro and Ideas, Brunermeier and co-authors said that the central issue with Brock was the conflict between Germany’s emphasis on rules and France’s preference for flexibility. I asked for the establishment of a bank. Union.

JAKOB VON WEIZSAECKER

Weizsaecker is the Chief Economist of the German Ministry of Finance under Scholz.

He was a member of the European Parliament of the Social Democratic Party from 2014 to 2019 and was a member of the Economic and Monetary Union.

A prominent member of the aristocratic family, he is a pro-European who is highly regarded by the German centre-right.

JOERG KUKIES

As Deputy Minister of Finance of Germany, Scholz was Scholz’s right-hand man.

He received his PhD in Finance from the University of Chicago, worked for Goldman Sachs for 17 years, and then joined the government in 2018.

He was criticized for his role in the wirecard https://www.reuters.com/article/us-germany-wirecard-inquiry-insight-idUSKBN2B811A scandal. We have outlined plans to save it with funds from the paying company and the state bank KfW.

Marcel Flatsshire

Fratzscher is the most “dove” candidate on the list, in support of the ECB’s ultra-loose monetary policy and seeking increased fiscal spending in Germany.

He told Handelsblatt that current inflation “doesn’t have to worry” and that the ECB should not raise interest rates accordingly.

A former European Central Bank economist, he teaches macroeconomics and finance at Humboldt University of Berlin and runs a DIW Berlin think tank.

Claudia Butch

Buch has been Vice President of the German Federal Bank since 2014 after serving for two years at the German Council of Economic Experts.

A 55-year-old former university professor will accompany Weidmann to the ECB’s board meeting.

However, she avoided most public monetary policy debates and instead focused on issues related to financial stability.

JENS ULBRICH

The Chief Economist of the Deutsche Bundesbank has been with the German Central Bank since 2005 after serving as General Secretary of the German Economic Expert Council for five years.

The 52-year-old economist is active on Twitter, but has not publicly expressed his opinion on monetary policy, primarily explaining the ECB’s decisions and commenting on the economic outlook.

(Report by Francesco Kanepa, edited by Catherine Evans and Kevin Riffy)



Who is the next chief of the Deutsche Bundesbank?

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