How does inflation harm a taxpayer
Inflation: Now the cold expropriation of savers threatens
The fact is: prices are rising in Germany - and surprisingly strong. In its latest monthly report from last week, the Deutsche Bundesbank reveals that consumer prices in January 2021 were 1.6 percent higher than a year ago. Far less surprising, as it is more automatically automated, such a price increase (in December, prices were still 0.7 percent below the previous year's level) arouses equally violent fears of inflation.
The inflation worries are also fed by the statement in the monthly report of the Bundesbank that the annual growth rate of the money supply M3 jumped to 12.3 percent by the end of December (M3 is the money supply that, from the point of view of the European Central Bank, ECB, has the decisive monetary influence on the price development exercises). It was more than twice as high as at the end of the previous year.
If the increase in the amount of money so overshoots the growth in the amount of goods, as it has been the case in recent years, prices should actually also skyrocket - so says conventional monetary theory. Generations of students have learned this relationship between the increasing amount of money minus the increasing amount of goods and rising goods prices as a quantity equation.
It was assumed that today, just as decades ago, banknotes would often be used every year to pay for goods - an assumption that has proven completely wrong. Regardless of this, the old inflation expectations remain.
Is there a threat of the cold expropriation of savers that many feared? A more than justified question! Because it is probably rightly expected that (savings) interest rates should leave the world of zero or even negative interest rates with a significant delay compared to inflation.
Standard of living in old age fundamentally at risk
- What if PTSD is left untreated
- Can urinary incontinence be treated well
- Are autistic people discriminated against?
- How many minutes are there in 12 months
- How is augmented reality used in healthcare
- Why are some people born intersex
- What is the real cause of fear
- Does anemia affect blood pressure
- What is Hunan Kitchen
- What are bad work practices
- What do you think of BTS ships
- Muslims lose faith
- What is meant by competitive analysis
- Is Urntrade a fake company
- How did the mother Direwolf die
- For which professions in the USA a permit is required
- What changes would Netflix make in Singapore?
- How does Go Green help the environment
- How did smoking affect your teenage life
- What are the strongest arguments against religion
- What is Temporary Construction in India
- Which country has no divorce
- What is the salary of an LPN
- What is your childhood dream that never came true
- Why does the onion make you sneeze
- What is a real breakfast
- How did Confucianism come to Japan
- Has life disappointed you and why
- How do Russians feel about homosexuality?
- What are the famous biotechnology websites
- American doctors are overworked
- Why do some people rule others
- Worsened cycling sciatica