Austerity for all isn’t working


Mark Schieritz, the financial correspondent of Die Zeit in Frankfurt, recently wrote an article called the “Lie of Inflation” (to accompany his new book) that argues Germany needs to step back from its instinctive reaction against any policy that is seen as inflationary.

The fear of inflation is rooted in German history. Hyperinflation during the Weimar Republic caused Chancellor Heinrich Brüning to initiate an “iron austerity politics”, with a rise in taxes, cut in state expenditure and wage and credit controls. This was designed to help the economy in the long run, but in reality the fear of inflation was replaced by economic crisis.

* Read the entire blog post here.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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