The largest European military donor is Germany, with €17.7 billion since February 2022, of which €9.4 billion has been allocated. The negative standing of the present German government coalition of Social Democrats, Greens, and Liberals doesn’t come as a surprise. The German chancellor’s historic 2022 Zeitenwende speech and the bitter reality that it has not had much impact … [Read more...] about Germany’s Security Failure
Central Banking
Cultural Change At the German Bundesbank
Some ten weeks after the German Bundestag elections, a traffic light coalition of Social Democrats, Greens, and Free Democrats took office on December 8, 2021. Olaf Scholz, who served in the previous coalition government as finance minister, was elected chancellor. Now a set of new politicians are in charge. The new year also brought another unexpected leadership change, this … [Read more...] about Cultural Change At the German Bundesbank
The Lean or Clean Controversy
Some have lauded the U.S. Federal Reserve’s first interest rate hike after seven years as a beginning step toward the normalization of monetary policy. In recent remarks at the Bank for International Settlements’ Farewell Symposium in honor of outgoing Chairman Christian Noyer, the Fed’s vice chairman, Stanley Fischer, addressed the issue that has been raised by the BIS for … [Read more...] about The Lean or Clean Controversy
The Sadness of Karl otto Pöhl’s legacy
With the largest ever bond-buying program by the European Central Bank looming, Bundesbankers were in an apprehensive mood when they gathered on January 13 for a commemorative ceremony to mark the passing of the Bundesbank’s former President Karl Otto Pöhl. Pöhl, who for decades served as a member of TIE’s editorial advisory board, passed away December 9, 2014, at the age of … [Read more...] about The Sadness of Karl otto Pöhl’s legacy
After the bank stress tests, ECB backroom tension lingers
The surprisingly positive outcome of the ECB’s health check for German banks may be something of a reprieve for the strained relations between Germany and the evermore- powerful European Central Bank under its controversial Italian president, Mario Draghi. But for the ECB, the real stress and tests are yet to come for the supervisor tasked with making hard decisions with … [Read more...] about After the bank stress tests, ECB backroom tension lingers