Inflation Is Dead, But Not German Angst: How the Monetary Policy of the European Central Bank Undermines the Culture of Stability

The recent expansionary course of the European Central Bank confuses Germany. Getting the southern members of the eurozone out of recession is important, but the price could be damage to domestic savings, fading enthusiasm for reforms in the eurozone and more lax approaches to inflation in the futur...

Full description

Saved in:
Bibliographic Details
Published in:Policy File 2014
Main Author: Plociennik, Sebastian
Format: Report
Language:English
Subjects:
Banking/Finance
Economic policy
Polish Institute of International Affairs
Online Access:Request full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The recent expansionary course of the European Central Bank confuses Germany. Getting the southern members of the eurozone out of recession is important, but the price could be damage to domestic savings, fading enthusiasm for reforms in the eurozone and more lax approaches to inflation in the future. In addition, the anti-deflationary bias in the eurozone can mark a point from which the traditional German macroeconomic preferences stop pushing themselves forward. Berlin needs allies to defend those preferences and Poland seems to be among them.