Germans and their fear of inflation: A historic misunderstanding?

Jacques Delors Fellow Nils Redeker states that the German aversion towards inflation is a historical misunderstanding cited in Bloomberg.

Many Germans are sceptical about the loose monetary policy of the European Central Bank in recent years. It is often assumed that this scepticism is rooted in German history and the devastating effects of extensive inflation during the Weimar Republic. In a new policy paper titled 'The Germans and Inflation: A Historical Misunderstanding', Policy Fellow of the Jacques Delors Centre Nils Redeker and his co-authors dig deeper into the sources of the German aversion to expansionary monetary policy. This study explains why many Germans have a deeply flawed understanding of their own history. The study is cited in Bloomberg quoting that “German policy makers and the media should try to pay attention to the complexities of economic history”.

Read the Bloomberg article here.

Pic: Sergio Boscaino, Source: flickr