Nobel laureate Krugman slams Bundesbank's Weber as risk to euro

AFP - [email protected]
Nobel laureate Krugman slams Bundesbank's Weber as risk to euro
Photo: DPA

Nobel Prize-winning US economist Paul Krugman launched a withering attack on Monday on Axel Weber, the head of Germany's central bank and the most likely successor to European Central Bank President Jean-Claude Trichet.


Krugman said that appointing Bundesbank boss Weber as head of the Frankfurt-based ECB would be "a risk for the euro" in an interview with German business daily Handelsblatt.

"Weber worries about inflation even when there is no inflation ... if you are looking for someone who targets zero inflation while unemployment rises to 13 percent, then Weber is definitely the right man," Krugman said.

The German is seen as the front-runner to replace Trichet when the latter's term runs out in late 2011 and is well known as a monetary policy "hawk," meaning he favours policies designed to keep inflation as low as possible.

"I would rather see an ECB president who pays more attention to deflationary dangers and to the risk of a long period of stagnation," said the US economist, in comments published in German.


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