Former German central bank chief Poehl dies at 85

AP News
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Posted: Dec 10, 2014 5:42 AM

BERLIN (AP) — Germany's central bank says Karl Otto Poehl, an anti-inflation hawk who led the Bundesbank from 1980 to 1991, has died. He was 85.

The Bundesbank said Poehl died on Tuesday but didn't give further details. Current chairman Jens Weidmann said Wednesday that Poehl "delivered proof that price stability and growth are not a contradiction even in times of great monetary policy challenges."

Poehl steadfastly resisted calls for lower interest rates during his tenure, saying they would drive up prices and ultimately hamper economic growth.

He stepped down in 1991, the year after German reunification, saying there were "very many reasons that come together" for his decision but stressing personal reasons. Poehl had clashed with Chancellor Helmut Kohl's government over its handling of monetary union between West and East Germany.