ZEW Economist Friedrich Heinemann on the Resignation of the Bundesbank President

Bundesbank President Jens Weidmann has requested his resignation at the end of the year. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at ZEW Mannheim, has commented on this matter:

“The resignation of Jens Weidmann is a severe loss for the ECB Governing Council. Weidmann is one of the few Council members who continuously warn against overstretching the remit of monetary policy and the danger of getting too closely involved in fiscal policy. 2022 could be the ultimate test of whether the ECB takes the goal of fighting inflation more seriously than the finance ministers’ interest in low interest rates and bond purchases. This is where Weidmann will be missed. The new federal government has a great responsibility in appointing an adequate successor. It would be fatal if Germany were to send a monetary policy dove to the ECB Governing Council.”