Despite low Inflation: The ECB should not react

It is exciting to see how it goes in the days of the loosening of the Corona-measures of Inflation. On the short message service Twitter, you scoff at just abou

Despite low Inflation: The ECB should not react

It is exciting to see how it goes in the days of the loosening of the Corona-measures of Inflation. On the short message service Twitter, you scoff at just about Thilo Sarrazin, had wagered in the year 2012, when it'll give in the next ten years, no high Inflation, he will give his diploma as an economist back. Because he would have so two years time. At the moment, in any case, the Inflation is as a result of the Corona-crisis almost everywhere to be abnormally low, even if in America, the inflation increase to worry about.

In Germany has slipped, the inflation rate in July, even in the negative range, mainly as a result of the reduction of the VAT. In other European countries such as France and more expensive food for a greater price provide buoyancy. Accordingly, the inflation rate for the Eurozone of just 0.4 percent higher than in Germany, but far away from the target of the European Central Bank "below but close to 2 percent".

Still, there are good reasons why the Central Bank should not respond. For one, they are already "full throttle". And on the other the Inflation, with energy prices expected to rise soon again.

Updated Date: 31 July 2020, 23:19

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