The big news today is based on a report by Bild, a German tabloid, which reported that Jens Weidmann, the head of Germany's central bank, offered to resign on multiple occasions due to his opposition to the ECB's plans to monetize euro zone sovereign debt. Previously, Germany's central bank head Axel Weber resigned after the ECB began buying sovereign debt. Weidmann is his replacement. Juergen Stark, the ECB's chief economist also resigned in opposition. But now the ECB wants to take things one step further and make unlimited purchases without mopping up the liquidity by selling other assets to offset its purchases.
Politics is THE key variable in the ECB's plans. As I wrote when outlining the variables which will influence the ECB's coming monetisation, "the ECB is explicitly rejecting...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.