The President of the Bundesbank, Jens Weidmann, has asked the Federal President Frank-Walter Steinmeier, who dismisses him from office on December 31, 2021.
Weidmann, who runs the German regulator since May 2011 alleges personal reasons. "I have come to the conclusion that more than 10 years is a good measure of time to spend a new page, for the Bundesbank, but also for me personally," WEIDMANN wrote in a letter published on the bank's website.
It refers to the achievements obtained jointly by the workers of the entity in an environment that has changed enormously and the tasks of the Bundesbank have grown. "The financial crisis, the crisis of the sovereign debt and more recently the pandemic has led to decisions in monetary policy and policy that will have lasting effects," she says.
Weidemann highlights the importance he always had for him that the Bundesbank had a clear, audible and stability-oriented voice and in that sense highlighted the important regulatory changes that have been adopted
"The reorganization of banking supervision in Europe has not only led to completely new supervisory structures at the ECB, but also a reinforced role for Bundesbank. The new responsibilities of the Bundesbank in the field of financial stability also emphasize our central role in Regarding a financial system operation, "stands out.
In what is already a farewell, Weidmann appreciated his colleagues at the Board of Government of the ECB under the leadership of Christine Lagarde by the open and constructive atmosphere in the sometimes difficult discussions and underlines the important stabilizing role of the Monetary policy during the pandemic, as well as the successful conclusion of the review of the strategy as an important milestone in European monetary policy.
Weidmann points out that the Bundesbank had contributed confidence with its analytical competence and its fundamental convictions to the recently concluded review process. "A target of symmetric and clearer inflation has been agreed. More attention should be given to side effects and, in particular, to the risks of financial stability. A specific exception of the inflation rate was rejected," continues Weidmann.
Looking ahead, he points out that he now depends on how "he lives" this strategy through concrete monetary policy decisions. "In this context, it will be crucial," says Weidmann, "not to unilaterally look at the deflationary risks, but neither lose sight of possible inflationary dangers.
A stability-oriented monetary policy will only be possible in the long term if the regulatory framework of the Monetary Union continues to ensure the unit of action and responsibility, monetary policy respects its limited mandate and is not trapped in the stele of fiscal policy or the financial markets. This remains my firm personal conviction, as well as the great importance of the independence of monetary policy. "
Emphasizes that it has been an honor and a matter close to your heart during all these years to represent Bundesbank as an institution and mold the Bank positions along with its colleagues for a stable currency, a stable, stable financial system. Payment systems and a safe cash supply.
Weidmann expressed special thanks to the members of the Executive Committee. Together, they had positioned the Bundesbank as a competent and agile institution that dealt with its staff with respect and acted with transparency towards the public.
Date Of Update: 20 October 2021, 15:48
