Who will be the next head of the Bundesbank? | The powerful 790 KFGO
FRANKFURT (Reuters) – Germany’s Social Democrats, a main partner in the three-party coalition forming a new government, are expected to choose a new head of the Bundesbank, the national central bank, by the end of this week.
Social Democrats, Greens and Free Democrats have reached a deal that will see Social Democrat Olaf Scholz replace conservative Angela Merkel as chancellor after 16 years.
Bundesbank President Jens Weidmann resigns on December 31, five years before his second term officially ends, after 10 years of largely unsuccessful opposition to the European Central Bank’s easy-money policies.
Here is a list of potential candidates to succeed him:
Schnabel is a member of the executive board of the European Central Bank, which would make an unprecedented move to Bundesbank.
In his first two years as a member of the ECB board, Schnabel broke the mold of German opposition to bond buying and negative interest rates and defended the ECB from critics in his native country.
She recently launched a hawkish note claiming that inflation could turn out to be higher than what the ECB is currently forecasting.
Nagel is a Social Democrat who worked in the Bundesbank for 17 years, rising through the ranks to become a member of the board of directors before stepping down in 2016.
At the German central bank, he was responsible for markets and information technology and did not systematically comment on monetary policy.
He is currently Deputy Head of the Banking Department at the Bank for International Settlements, which he joined in 2020 after a four-year stint at German state bank KfW.
He holds a degree in economics.
The Princeton professor is perhaps the most international candidate on the list, having done most of his research and teaching in Britain and the United States.
He has co-authored scientific papers with ECB chief economist Philip Lane, including one who championed the creation of a safe “synthetic” asset for the eurozone and received a cold reception from the Bundesbank.
In a 2017 book, “The Euro and the Battle of Ideas,” Brunnermeier and his co-authors said the bloc’s central problem lay in a conflict between Germany’s focus on rules and preference. of France for flexibility, and called for the creation of a full-fledged banking system. union.
JAKOB VON WEIZSAECKER
Weizsaecker was the chief economist of the German Ministry of Finance under Scholz.
He was a member of the Social Democrats in the European Parliament between 2014 and 2019, sitting on the Committee on Economic and Monetary Affairs.
A prominent member of an aristocratic family, he is a pro-European well regarded by German center-right.
As German Deputy Minister of Finance, Kukies was Scholz’s right-hand man.
He holds a doctorate in finance from the University of Chicago and worked for Goldman Sachs for 17 years before joining the government in 2018.
He was criticized for his role in the Wirecard scandal https://www.reuters.com/article/us-germany-wirecard-inquiry-insight-idUSKBN2B811A, for sending Scholz a nine-page memo in which he downplayed the concerns about the payment company and presented a plan to rescue it with funds from the state-owned KfW bank.
Fratzscher is the most “accommodating” candidate on the list, having backed the ECB’s ultra-accommodative monetary policy and called for more budget spending in Germany.
He told the Handelsblatt that the current inflation rate was “nothing to worry about” and that the ECB should not raise rates in response.
A former economist at the European Central Bank, he teaches macroeconomics and finance at the Humboldt University in Berlin and heads the DIW Berlin think tank.
Buch has been Vice-President of the Bundesbank since 2014 after a two-year stint on the German Council of Economic Experts.
The 55-year-old former university professor accompanies Weidmann to meetings of the Governing Council of the ECB.
But she largely avoided the monetary policy debate in public, focusing instead on issues related to financial stability.
The Bundesbank’s chief economist has worked for the German central bank since 2005 after a five-year term as secretary general of the German Council of Economic Experts.
The 52-year-old economist is active on Twitter but has not spoken publicly on monetary policy, mainly explaining the ECB’s decisions and commenting on the economic outlook.
(Reporting by Francesco Canepa; Editing by Catherine Evans and Kevin Liffey)