The symposium of the Bundesbank and the Foundation of Monetary and Financial Stability took place on the occasion of changes at the helm of the Foundation. Gerhard Ziebarth succeeded Willy Friedmann as Chairman of the Executive Board of the Foundation. Thomas Möllers of the University of Augsburg succeeded Mr. Remsperger as Chairman of the Council. During their term of office Mr. Remsperger and Mr. Friedmann were actively involved in supporting the Board of Trustees of IMFS and were therefore appointed IMFS Distinguished Fellows.
The IMFS is supported by the endowment funds of the Foundation of Monetary and Financial Stability. Its endowment funds come from the sale of 1 DM gold coins in 2001 that were issued at the occasion of the euro cash introduction in memory of the D-Mark. The coin symbolizes the special responsibility of the Bundesbank in maintaining monetary stability. After its formation in 2004, the IMFS was opened at Goethe University in 2007.
In his speech, Mr. Möllers pointed out the merits of Mr. Remsperger’s work during his 14 years of Chairman of the Council as well as the successful collaboration with Mr. Friedmann. In his acceptance speech Mr. Remsperger emphasized that the success of the Foundation was a result of a group effort. He warned that a new wind was blowing for monetary and financial stability ever since the European Central Bank has tried to push the inflation rate up “from the bottom to the top, i.e. from the South to the North, close to 2 percent”. “The instruments that are considered to be necessary to regain monetary stability hold risks for financial stability.”
Mr. Weidmann emphasized the importance of monetary stability in times of low inflation and that both excessively high and low inflation rates were detrimental. Weidmann fears that in light of the very low inflation rate “people will lose the awareness of the importance of stable prices,” which might turn out to be dangerous for central banks: “If the inflation rate goes up again and monetary policy should be more restrictive, it might turn out to be tempting to instead postpone interest rate increases given the high level of government debt.”
Report of the symposium of Bundesbank and the Foundation of Monetary and Financial Stability
Speech by Bundesbank President Jens Weidmann at the symposium
Words of thanks by Hermann Remsperger (PDF, 112 KB)
Speech by Thomas M. J. Möllers (PDF, 232 KB)
Helmut Siekmann: "Preis- und Finanzstabilität: der Primat der Politik, der rechtliche Rahmen und das "ökonomische Gesetz", IMFS WP No. 104, (PDF, 165 KB)