The Bundesbank on digital disruption
The speech from Jens Weidmann today was a bust when it comes to highlighting what comes next for monetary policy but there were some tidbits on his worldview, especially on technology.
The worry about technology at the moment is that it helps to depress prices by increasing competition and disrupting established players but Weidmann said technology can also lift growth. However, in line with that, it could also boost the amount of growth that can occur before inflation picks up.
"There are many starting points at the national but also at the European level," he said in a speech in Freiburg, Germany. "We have to use the chances technology offers: with improved education options, a broadening of the digital infrastructure, increased cyber-security and a modernized legal framework. For Europe, it's time to finish the digital domestic market."
Looking ahead, speeches from Praet (Wednesday) and Lautenschlaeger (Thursday) highlight a light calendar for ECB speakers.
