, Columnist
The Trouble With Bundesbank President Jens Weidmann
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Germans need to re-think whether Bundesbank President Jens Weidmann’s move to lodge a legal challenge against the European Central Bank’s bond-buying program was such a good idea. They don’t have a lot of time.
Germany’s constitutional court in Karlsruhe is scheduled to decide the case next month. If it says the ECB’s outright-monetary-transactions program is illegal, then markets will dump the euro, and bond markets in the euro area’s peripheral economies will swoon. The last thing Europe needs as it seeks to emerge from a recession is a return to last year’s unstable financial markets.