Joachim Nagel on the ECB’s terminal rate, fiscal policy, model relevance and the digital euro – Central Banking
The Deutsche Bundesbank president speaks about compromise on the Governing Council, rolling back PEPP, the need to implement Basel III and the chances of a revised Stability and Growth Pact
What were your primary goals when you took over as head of the Deutsche Bundesbank?
The Bundesbank’s primary objective is the same as it has always been: to maintain price stability. When I took over in January 2022, it was clear that inflation was running too high. That was barely six weeks before Russia unleashed its war of aggression against Ukraine. If you read the first speech I gave as Bundesbank president, you will see that I emphasised the risks stemming from high inflation. At the
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