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Letter from the Chief Economist

Ludger Schuknecht was chief economist at the German Finance Ministry from 2011 to 2018. He headed the Ministry’s directorate-general for economic and fiscal policy strategy, international economy and finance for seven years. Since 2015, he regularly shared his views on the latest economic and fiscal policy topics.

Financial markets Europe must reduce forbearance risks

The chief economist’s last newslet­ter from Ju­ly 2018 states that reg­u­la­tors have dealt ef­fec­tive­ly with well-known threats to fi­nan­cial re­silience, but they rarely men­tion the con­se­quences of de­lays and in­ac­tion in deal­ing with the prob­lems of banks. Ludger Schuknecht and Levin Holle warn this might en­tail sys­temic prob­lems.

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