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 of the challenges facing the Bundesbank and an interesting German point of view to the current European crisis.
