Inflation—Here to Stay?
On November 28, an event organized by the German Economic Council (Baden-Württemberg Regional Association)—of which our managing director and owner, Christian Müller, is a member—was held at our offices. Dr. Joachim Nagel, President of the Deutsche Bundesbank, spoke at the event, addressing inflation and its implications in the context of the current crises.
The title of the event was “Inflation Update – Here to Stay?” The keynote speaker was Dr. Joachim Nagel, President of the Deutsche Bundesbank and member of the ECB Governing Council. In his presentation, he discussed inflation and its future trajectory in light of the energy crisis and the war in Ukraine, as well as the ECB’s options for countering it.
“High inflation won’t disappear overnight,” Nagel said in his speech. Experts at Deutsche Bank continue to expect a rate of over 7% in the coming year. That is why it is important to keep an eye on trends, particularly with regard to the threat of a wage-price spiral. Nagel does not consider a shift away from globalization to be sensible in this context; on the contrary, a shift toward deglobalization could further fuel inflation.
The primary goal of monetary policy is therefore, in principle, to halt inflation and bring it back down. With the interest rate hikes already implemented, further planned rate increases, and various other measures taken by the European Central Bank, Nagel believes the right path has been taken. In this context, he also considers it important to keep the public’s experience of inflation as minimal as possible in order to avoid future negative effects on people’s thinking and behavior as much as possible. He concludes his speech by saying:
“Hopefully, however, it (inflation) will not leave any lasting scars, but will be remembered as an exceptional situation that was brought back under control in time thanks to the right monetary policy.”
The full speech can be read on theDeutsche Bundesbank website.
The event was attended by approximately 65 invited guests from the business and political communities, who also participated in the discussion on the topic following the speech. The thoroughly successful evening concluded with a social gathering featuring culinary delights from the local Michelin-starred restaurant “Schwitzers” in Waldbronn.
We would like to extend our heartfelt thanks to Dr. Nagel, the German Economic Council, andSchwitzer’s Restaurantfor the interesting and inspiring evening!