according to media reports German government along with Bundesbank and BaFin will fight possible bubbles in German real estate sector by having quarter yearly meetings upon this issue and they will report to German legislative body, the Bundestag afterwards.
A cabinet meeting will be held on May 2nd to negotiate a new law that will provide from 2014 onwards some measures to counter a possible hike in mortgages provided to individuals by German banks. (There are reports like this one, suggesting that there is a real estate boom in Germany)
Mr Weidmann, president of the Bundesbank renewed during a speech held in New York a warning about the dangers of a too loose monetary policy by the ECB and announced: "we will apply other instruments to be able to handle this phenomena."
Unlike the path described here in the opinion section to do it the 'fiscal way' (by using tax punishment for making certain unwanted profits unattractive), German government choses for enhancing the capital requirements for granting mortgages.
The report goes on:
"Es wäre ein Werkzeug zur Bekämpfung von Immobilienpreisblasen gefunden, das spezifischer wirkt und feiner dosierbar ist als der Leitzins der Zentralbank."
"A tool to fight the real estate pricing bubbles would have been found, which is more specific and allows finer tuning as the base rate of the central bank"
which sounds pretty much like this.
So when the author here had a first glimpse at this New York Times' article and its paragraph:
>>"Let us say that monetary policy becomes too expansionary for Germany,”Dr. Weidmann told the Economic Club, making it clear that it is not German national sovereignty that needs to be sacrificed. “If this happens,” he said, “Germany has to deal with this using other, national instruments.” He did not specify what those instruments would be.<<
he knew by and large what instruments Mr Weidmann had in mind.
Germany's fight against new bubbles (risknet) (ger)
Global Economic Outlook – What is the best policy mix? Speech at the Economic Club of New York
In Europe, a Marriage Shows Signs of Fraying (NYTimes)
Weidmann: Central bank can't fix euro crisis with loose money, says deficits must come down
KantoosEconomics asks good questions
May 3rd 2012 Gesetzentwurf: Finanzaufsicht wird gestärkt
May 3rd 2012 UPDATE: Bundeskabinett will Reform der Finanzaufsicht
last upd.: May 3rd 2055 CET