"Joachim Nagel has so far advocated a stability-oriented course in monetary policy. If he stays with this stance, he will be among those in the Governing Council of the ECB who put forward counter-arguments to the current ultra-expansive monetary policy and will communicate with the public accordingly. Especially those who advocate a looser monetary policy should be pleased to see a Bundesbank chief acting as a so-called hawk in terms of monetary policy. For in doing so he dampens expectations that inflation will overshoot the target in the medium term. And the longer expectations remain stable, the longer the ECB can maintain its current policy. At the same time, Nagel's appointment does not change the voting majority in the ECB's Governing Council. The advocates of loose monetary policy therefore don’t need to be worried about the future Bundesbank leadership, as they will probably get even more leeway for their course in the short term. Of course, that is no reason to be carefree. A leap of faith does not last forever, but must be backed up by credible action. "