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Does central bank capital matter? German power tandem should back Merz

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Does central bank capital matter? German power tandem should back Merz

Thursday 28 January 2021 – Vol.12 Ed.4.4

Commentary: Does central bank capital matter?

By Danae Kyriakopoulou and Pierre Ortlieb

The tension between central bank independence, profit and loss accounting and the structure of the Eurosystem has come into the spotlight. This is due to the rise of the European Central Bank’s balance sheet and its growing exposure to often negative-yielding sovereign bonds. Part 1 in this new series on central bank accounting and capital policy looks at how national central bank and European Central Bank holdings of public sector debt are treated differently.

Read the full commentary on the website.

Commentary: New power tandem should back Merz 

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By Andreas Meyer-Schwickerath in Berlin

Germany needs a more market-orientated economic and industry policy to meet post-pandemic challenges. The main governing parties’ new power tandem, Armin Laschet and Markus Söder, should enshrine Friedrich Merz, the German conservatives’ key economic thinker, as a pivotal figure in their team. This could pave the way for Merz to become finance minister after the September elections – if he can build a reputation as a team player and not an antagonistic soloist.

Read the full commentary on the website.

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