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The president of the Bundesbank resigns unexpectedly

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The influential president of the German Bundesbank, Jens Weidmann, a champion of monetary orthodoxy, announced on Wednesday that he will resign from his post at the end of the year, after a decade at the helm of this institution and in full uncertainty about the future of accommodative monetary policy European.

“I came to the conclusion that, after more than ten years, it is the appropriate time to inaugurate a new chapter, for the Bundesbank, but also for me in a personal capacity,” wrote the president of the “Buba” in a letter addressed to the employees of the institution.

During his tenure at the head of the Bundesbank, which in principle would not end until 2027, Weidmann could not prevent a decline in German influence on the monetary policy developed on a large scale throughout the euro zone by the European Central Bank (ECB).

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The announcement of his departure also takes place at a time when Germany is about to turn the page of Angela Merkel in the chancellery, with whom the career of this central banker was linked, who embodied the country’s obsession to fight against the inflation.

The reluctance expressed for a long time by Weidmann in the face of the expansionist course taken by the ECB under the mandate of former President Mario Draghi, still echoes in his letter of departure.

In the future, it will be “key not only to consider the risks of deflation, but also to lose sight of the potential risks of inflation,” something that suggests applying a more restrictive monetary policy, he wrote in his letter.

Weidmann has already asked the ECB for several months to consider a tightening of credit after having deployed an arsenal of exceptional support measures in the face of the coronavirus crisis.

He is also concerned about a possible long-lasting rise in inflation in the euro zone, which the Christine Lagarde-led institution sees as temporary for the time being.

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