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Significance
Weidmann decided to quit early as his efforts to oppose ultra-loose monetary policies were continuously resisted in the ECB. Unlike his predecessors, Nagel does not appear to possess strongly held convictions regarding monetary policy, suggesting he will be more pragmatic in relations with the ECB.
Impacts
Nagel will make digital modernisation a key objective during his time as Bundesbank president.
Nagel’s support for stronger German connections with Chinese financial markets may weaken amid political tension.
A strong economic recovery in 2022 would embolden those in the ECB governing council supporting the phasing out of asset-buying programmes.
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2022
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