The ECB started raising interest rates this year. She has not ended her bond purchases.
(Photo: dpa)
A double-digit inflation rate in Germany – 10.0 percent in September, the highest level since 1951 – has symbolic power. It is further evidence that the feared scenario of a stagnating economy with persistently high inflation has long been reality: stagflation.
Europe’s largest economy is facing the most difficult autumn and winter since the 1970s. Things are not looking much better in other European economies. Even among those who, due to their lower energy dependency on Russia, do not suffer so much from the high prices in this area.
This is the price paid for a hesitant central bank that demonstratively ignored the problem for a long time and only reacted when it was far too late. Ultimately, however, it is also the receipt for a policy that intends to save everything and everyone – but in any case wants to cushion the rising energy costs for citizens.
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Continue
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Continue