At the Deutsche Bundesbank’s Annual Report 2024 press conference, President Joachim Nagel emphasized the urgent need for effective economic policy in Germany following the recent snap Bundestag election. He called for a swift formation of a new government to foster higher growth and improve planning certainty and supply-side conditions. First Deputy Governor Sabine Mauderer will provide detailed insights into the annual accounts shortly.
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0 posts last weekBundesbank and ECB report historic losses from expansive monetary policy
The Bundesbank and the ECB have reported combined losses nearing 30 billion euros due to the repercussions of expansive monetary policies and extensive securities purchases over the past two years. The Bundesbank’s loss of 19.2 billion euros in 2024 marks its first loss since 1979 and the largest in its history. President Nagel has proposed reforms to the German debt brake in response to these challenges.
read moreFinancing the Transition to Greenhouse Gas Neutrality in Europe
Joachim Nagel emphasizes the urgent need for over €1.2 trillion annually in EU investments to achieve greenhouse gas neutrality by 2030, highlighting a significant gap in current funding. He advocates for a robust banking system and alternative financing sources to support households and firms in transitioning to greener technologies. Additionally, strategic long-term planning by legislators can help minimize additional financing needs and encourage sustainable investments.
read moreLessons from Recent Disinflation and Monetary Policy Responses
At the CEBRA Annual Conference, Deutsche Bundesbank President Joachim Nagel emphasized the importance of economic research in shaping monetary policy, particularly during the recent disinflation episode. He noted that while supply shocks were initially deemed temporary, demand factors significantly contributed to inflation, leading to key interest rate hikes starting in July 2022. Despite a decline in inflation rates, Nagel highlighted the need for cautious monitoring as core inflation remains elevated, with a commitment to achieving the medium-term target of 2%.
read moreEuropean Central Bank Nearing Completion of New Operational Framework
The European Central Bank is working on a new operational framework, aiming to operate with excess liquidity post-financial crisis. ECB member Joachim Nagel expressed confidence in managing this transition, citing changes in financial markets and regulatory requirements as driving factors. ECB President Christine Lagarde expects the new framework to be finalized by the end of spring.
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