Jens Weidmann, Bundesbank president, was in London today to give a talk at Chatham House about rebalancing Europe.
The official speech was the standard Bundesbank fare about how it wasn’t up to the surplus countries, such as Germany, to rebalance their economies by boosting domestic consumption and that the onus should instead fall on the deficit countries to enhance their competitiveness.
No surprise there then. Neither was it too much of a shock that Mr Weidmann managed to get in a dig at the Banca d’Italia, Mario Draghi’s former stomping ground — though the dig covered the “unholy marriage” between Italy’s central bank and its finance ministry from the mid 1970s until 1981, a period before Mr Draghi arrived at the Bank.
However, some juicier stuff came out in the Q&A. Read more