DIW President Fratzscher considers the high rate of inflation to be a temporary phenomenon, while Wieland’s economy warns that inflation is setting in motion.
(Photo: DPA)
Berlin Inflation is returning, and with force. The Bundesbank expects an inflation rate of almost six percent for November. Price pressure is likely to decrease from January onwards. The Bundesbank warns, however, that inflation rates of well over three percent will continue to threaten for a long time to come.
But how great is the risk of inflation really? Are there any threat of inflation rates of seven or eight percent, as in the 1970s?
Or are these all just nightmares and lower inflation rates will again become the dominant problem, as in previous years?
The Handelsblatt has asked two of the country’s biggest monetary policy experts to debate. DIW President Marcel Fratzscher, who once worked for the European Central Bank (ECB), considers the high inflation rates to be a temporary phenomenon. Only in the medium term does he see inflationary tendencies due to the shortage of skilled workers.
Top jobs of the day
Find the best jobs now and
be notified by email.
The Frankfurt economics professor and economist Volker Wieland warns against this that inflation is already in the process of settling. The ECB must therefore initiate a turnaround in its monetary policy.
Read the full interview here:
Read on now
Get access to this and every other article in the
Web and in our app for 4 weeks free of charge.
Further
Read on now
Get access to this and every other article in the
Web and in our app for 4 weeks free of charge.
Further