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Bundesbank President Under Fire from German Politicians

The Bundesbank president Jens Weidmann has been under pressure from European and even American policy makers to stop being the voice of reason and get with the program. Last week Mr. Weidmann even faced some friendly fire from the unlikeliest of places.

Volker Bouffier the governor of Hesse, where Frankfurt is located, invited Weidmann and to the shock of all present started pressuring the Bundesbank to get in line with the European Central Bank and buy Spanish and Italian sovereign debt.

Weidmann to his credit has not backed down. He has gone on the offensive and has gone on the record with statements like: “We shouldn’t underestimate the danger that central bank financing can become addictive like a drug,”

Spiegel has a good write up [1] of the challenges facing the Bundesbank and an interesting German point of view to the current European crisis.

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza