Change at the Bundesbank: from Weidmann to Nagel?
Politics at the apex of German central banking amid Buba/ECB discord
In October 2021, a ‘traffic-light’ coalition of Social Democrats (SPD), Greens and Free Democratic Party (FDP) was making significant progress negotiating a power-sharing agreement in Germany. The aim was to bring about ‘a new beginning’ for the country after 16 years under the leadership of Angela Merkel. The election defeat of the Christian Democratic Union (CDU) came after years of negative interest rates set by the European Central Bank (ECB), despite positive inflation in Germany –
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