Bundesbank, Nagel new President: the doveliest of hawks

Change at the top of the Bundesbank, the powerful German central bank which from January XNUMXst will have a new president: the economist Joachim Nagel, considered close to Chancellor Scholz and "the most dovish of hawks"

From 2022 January 55 he will be the XNUMX-year-old economist Joachim Nagel the new President of the Bundesbank, the powerful German central bank. He takes the place of Jens Weidmann, the most hawkish of German bankers, repeatedly outvoted by Mario Draghi, when he was president of the ECB.

This was announced by the new German finance minister, Christian Lindner, who said that, in times of resurgent inflation, there is a need for stability in monetary policy.

Chancellor @OlafScholz and now Joachim Nagel is the new president of the @bundesbank vor.Angesichts von Inflationsrisiken wächst die Bedeutung einer stabilitätsorientierten Geldpolitik. It is a erfahrene Persönlichkeit, die Kontinuität der #Bundesbank sichert. CL
— Christian Lindner (@c_lindner) December 20, 2021

Nagel (nothing to do with Mediobanca's CEO, apart from his homonymy) is currently the Deputy Head of the Banking Department of the Bank of Regulations (BIS) but, previously, worked 17 years in the Bundesbank. It's not a real dove but it's believed the most dove of falcons. And the fact that he is considered politically close to the new German Chancellor, the Social Democrat Olof Scholz, helps.

Scholz himself will talk about it to Draghi during his visit to Italy today. In short, Nagel's appointment promises to be good news for the ECB, for Italy and for Europe. As well as for Germany and the Bundesbank.