The Bundesbank wants to go out into the country, and it weighs tons. There is actually a fat two-storey truck at the Frankfurt Hauptwache right now, it belongs – exactly – to the Deutsche Bundesbank. It says so in clear letters. But they are serious about it. Bundesbank board member Burkhard Balz speaks of the beginning of the “roadshow” through Germany. It should last until the end of October and lead through 90 cities and communities. “We want to get into the fray, on the market squares of the republic, from Constance to Sylt, from Aachen to Görlitz,” said Balz on Thursday at the start of the tour. The former European politician is campaign tested. He learned how to talk to people. But now he is a central banker, who are otherwise known for many things, but not for Remmidemmi and Humtata. Does the Bundesbank, which has been mostly reserved in its more than 60-year history, long for more closeness to the people?
Yes, you could say. The German currency guardians still enjoy a great reputation among the population. To this day, many people glorify the long-gone era of the stable D-Mark. However, people reflect this glorified epoch in the currently record high inflation figures. The Bundesbank must also take responsibility for the high prices. The President of the Bundesbank has a say in the Council of the European Central Bank, whose primary task is to ensure stable prices. The inflation rate in the euro zone is now 7.5 percent. This is the highest value in the history of monetary union.
It’s about promoting trust
Consequently, there is a need for explanation. “We want to ensure monetary stability, but that only works if we enjoy the trust of the population,” said Balz. “To do this, people have to understand what the Bundesbank is doing.” And that’s exactly why there is the huge truck that is now supposed to drive up in many inner cities of the country. Inside, visitors will find video games and animated graphics that explain how the money cycle works, how inflation reduces purchasing power, and there is even “counterfeiting training” on board. There is a seating area upstairs. The official slogan of the “tour to the culture of stability” is also intended to advertise the Bundesbank as an employer. Some of the performances will be attended by board members.
The Bundesbank has been taking care of closer contact with the population for some time. Earlier events such as the “Open House” were intended to increase trust in citizens. The ECB under President Christine Lagarde would also like to explain the complicated world of monetary policy better. Europe’s currency guardians are fighting for legitimacy. The rescue policy of the past decade with controversial bond purchases in the trillions and zero interest rates have left their mark. There were constitutional complaints against the loose monetary policy of the ECB. Many savers are now even more annoyed by the ongoing zero interest rate policy because inflation rates are so high.
Shy creatures in the ivory tower – that was once
Before the outbreak of the financial crisis in 2008, central bankers were seen as shy creatures in ivory towers. The general public took little notice of this technocratic elite. Their task was to lower or raise the key interest rate at the right moment. To combat the financial and debt crises after 2008, the ECB has repeatedly decided on new and unprecedented measures, which also triggered protests in European society. Since then, the central bank has been more in the limelight, so it has to get closer to the citizens whose money it wants to protect.
The Bundesbank’s road show in a truck, the size of which would also do justice to a concert tour by the Rolling Stones, is intended “to give people orientation as to what we’re doing, and it’s not supposed to be an economics seminar,” promises Balz. The new President of the Bundesbank, Joachim Nagel, knows how complicated the world of central bankers is: “You hardly find anyone who can simply explain what the Bundesbank is doing,” he said at the start date. “That’s why this roadshow is important.”