The economist believes that the capital markets have not yet sufficiently processed the risk of inflation in their courses. (Photo: Barclays)
Because more than five percent inflation is measured for the USA and more than four percent for Germany, worries are growing: Will the central banks slip away from developments, will we get a situation like the one in the 1970s?
Christian Keller, chief economist at the British Barclays Bank from Germany, fears that inflation could be above the central banks’ target of two percent for a while. In addition, in his opinion, the capital markets have not yet sufficiently processed the risk of inflation in their prices.
At the same time, Keller clearly opposes horror scenarios that are fed by memories of the 1970s. He recommends monetary policymakers to pay particular attention to whether a wage-price spiral develops and to react more cautiously overall. In the longer term, he can imagine an increase in real interest rates, caused, among other things, by higher investments in climate protection.
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