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German economy continues to recover despite supply-side bottlenecks

27.09.2021

The recovery of the German economy, which began in spring, continued at a faster pace in the third quarter of 2021,” the Bundesbank writes in its Monthly Report. Particularly strong growth was reported for private consumption and services. Supply-side constraints persisted in industry, however, so that output continued to lag considerably behind strong demand.

German economy continues to recover despite supply-side bottlenecks
Production line automotive industry
Weidmann: Risks to the price outlook currently tilted to the upside

02.09.2021

Bundesbank President Jens Weidmann has warned against ignoring the uncertainty surrounding future price developments. “We also need to keep an eye on the risks to the price outlook. In my view, the risks are tilted to the upside right now,” he said at the Bundesbank symposium “Banking supervision in dialogue”.

Weidmann: Risks to the price outlook currently tilted to the upside
Weidmann during his speech at the virtual autumn conferenceof the Bundesbank
Weidmann: Keep an eye on the risk of an inflation rate that is too high

08.08.2021

Bundesbank President Jens Weidmann has once again called for monetary policy in the euro area to be normalised when the inflation outlook calls for it. In an interview with the German Sunday newspaper Welt am Sonntag, he said he wouldn’t rule out higher inflation rates either. “In any event, I will strongly recommend keeping a close eye on the risk of an inflation rate that is too high and not only on the risk of one that is too low,” he commented.

“Unsound government finances are a risk”
Jens Weidmann during an interview
Weidmann: new inflation target not a dramatic change of course

24.07.2021

From the point of view of Bundesbank President Jens Weidmann, the ECB’s new inflation target of 2 percent is neither a move towards significantly higher inflation rates nor a dramatic change of course. He does not see central banks as having the type of influence over the economic process that would enable them to steer inflation rates with pinpoint accuracy to the nearest decimal place. “That’s why a slight, temporary overshooting of the 2 percent target is just as unavoidable as a slight, temporary undershooting”, he said in an interview with the German daily newspaper Frankfurter Allgemeine Zeitung. “This isn’t a problem, and is something we agreed on as part of the strategy”, noted Mr Weidmann.

“Inflation rates going in the direction of 5%”
Jens Weidmann during an interview
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