The economist is of the opinion that Germany’s ecological restructuring will drive inflation even further.
(Photo: IMAGO/Christian Spicker)
Markus Brunnermeier is currently in Japan for research purposes: There is probably no better place to study the consequences of long-term ultra-loose monetary policy than there. The Japanese central bank is the pioneer when it comes to quantitative easing, i.e. the purchase of securities.
The 54-year-old belongs to the category “pragmatic economist with international standing”. He is considered one of the most recognized academics in the field of financial crises.
Mr. Brunnermeier, inflation has returned with a vengeance after 15 years of absence. Western central banks have missed their inflation target by a wide margin since 2021: should we be prepared for an inflation rate of four percent in the long term?
In any case, it will be quite a while before we are back at the target of two percent inflation. Because once trust is lost, it is very difficult and expensive to regain it. But the good news is that the inflation expectations of the citizens of the euro area are still anchored.
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