The January 2023 issue of the Monthly Report explores how monetary policy has evolved from the monetary pillar to the monetary and financial analysis. Another article looks at yield curves in economic analysis. In addition, the Report addresses the question of how mobile payment methods are used in Germany. Finally, consumer access to cash in Germany is discussed on the basis of an evaluation of the geographical availability of cash withdrawal locations. 

Record inflation in the euro area has led the ECB Governing Council to start raising its key interest rates. The effects on the domestic economy and spillover effects on foreign countries may primarily depend on whether exchange rates are floating or fixed. A new empirical study shows that, during the time of the Deutschmark, the Bundesbank’s monetary policy was transmitted to a significantly greater degree to neighbouring European countries with fixed exchange rates to the Deutschmark than to those with floating exchange rates to the Deutschmark.

Kick-off meeting with representatives of the German banking industry

The macro-financial environment has deteriorated substantially over the course of 2022. It has been shaped by subdued growth prospects, high inflation as well as rising interest rates and risk premia.