Whereas strong demand is a key factor driving high inflation in the US, inflation in the Euro Area is mainly due to adverse external supply shocks (in Europe, energy prices are much higher due to the war in Ukraine). Standard monetary policy response to such shocks is to accommodate first-round...

Die letzte Leitzinserhöhung der Europäischen Zentralbank (EZB) birgt ein Risiko: Noch nie war das Inflationsdifferential in der Eurozone zum Zeitpunkt einer Zinserhöhung so hoch wie heute. In einem solchen Umfeld kann die Zinspolitik kontraproduktiv wirken. Der Beitrag erläutert Konsequenzen...

The COVID-19 pandemic massively interrupted economic activity all over the world. Governments responded by running huge fiscal deficits (financed via central banks) to support firms and consumers, thereby injecting purchasing power into the private sector on a large scale. With no corresponding...

In den vergangenen Jahren haben sich einige führende Industrieländer für die Einführung inflationsindexierter Staatsanleihen entschieden. Gegenwärtig prüft auch das Bundesfinanzministerium die Einführung inflationsindexierter Staatsanleihen. Was spricht für und was spricht gegen solch...

The slight slowdown of consumer price inflation in Germany in November does not yet constitute the beginning of lower inflation rates. Even though energy prices are dragging inflation, producer prices have drastically increased in the past year. Our estimates indicate that inflation rates will...