Weidmann’s ECB agitation more dangerous than Weber

March 2, 2012

The Bundesbank head has warned the ECB over the dangers of loose liquidity. The move echoes the battle over bond-buying that led to the resignation of his predecessor, Axel Weber. Weidmann’s worries are more controversial in that they appear to stem from the risks of a euro exit.

Let Germany inflate while others deflate

May 9, 2012

The Bundesbank is worried about a possible loosening of the ECB’s monetary policy. That’s not on the cards, but should be. Additional central bank support might push German inflation above the euro zone average - but the differential would help rebalance the European economy.

At last, central bank candour on property bubbles

October 22, 2013

The Bundesbank says apartment prices in some German cities could be 20 pct overvalued. Policymakers usually avoid such blatant views on prices, saying distortions aren’t their problem unless leverage is a factor. That’s too narrow: central banks have a role as market critics.

ECB picks good time to sell Lehman bonds

November 13, 2009

The European Central Bank was right to wait to sell a portfolio of about 820 million euros of toxic assets it was left with after Lehman Brothers collapsed.

Berlin’s BaFin move welcome but not enough

October 9, 2009

Germany's incoming coalition plans to strip BaFin of its banking remit, and give it to the Bundesbank (Buba). There is no doubt the financial regulator has done a poor job, and it makes some sense to return bank supervision to the central bank. But -- as in the United Kingdom and U.S. -- the danger is that reshuffling organisational structures will only distract from bigger regulatory challenges.