I have to say that Axel Weber has bowed out of the race for ECB head gracefully; but this isn’t really about the person, it’s about the views. And I am therefore glad to hear both that he won’t be taking the job, and that the reason he bowed out was that euro-area leaders didn’t share his hard-money views. Tightening in Europe in the face of continuing very high unemployment and low core inflation is a very bad idea.
In a somewhat similar vein, I wish Kevin Warsh all the best in his future career — and I’m glad to see someone who believes that both monetary and fiscal policy should tighten to head off fears the market doesn’t even have off the Fed board.
Not a bad few days for future policy prospects.