India

inflation problem

Figures for the German economy, released for December and for the whole of 2021, show that the cost of living increased only by 3.1 percent during 2021. Apart from high energy prices, the reason for this was also the supply chain blockade, which arose due to the corona epidemic.

The era of inflation that is currently in the world, its caravan has also reached Europe. The latest news is from Germany. Germany is witnessing a sharp jump in the prices of basic commodities like food and fuel after more than three decades. This has fueled anger towards the European Central Bank. Figures for the German economy, released for December and for the whole of 2021, show that the cost of living increased only by 3.1 percent during 2021. Apart from high energy prices, the reason for this was also the supply chain blockade, which arose due to the corona epidemic. Apart from this, it also contributed to the elimination of exemption on long value added tax in the country. Germany, Europe’s largest economy, had not seen such inflation since 1993. When this is the case with Germany, the condition of other European countries with weak economies is understandable. According to experts, the European Central Bank (ECB) has failed to keep prices stable. Its ‘cheap money policy’ has made the situation worse. The cheap money policy means indiscriminate printing of notes.

The ECB says that its decision to keep interest rates low and buy ‘Pandemic Emergency Bonds’ worth 1.85 trillion euros was necessary to protect the economy from the effects of Corona. That’s why the notes were printed. Many experts believe that the zero interest rate policy of the ECB is also proving to be harmful now. Due to this the property of common man is getting damaged. Due to this ECB policy, savers have been apprehensive about the bank for a long time. Under this policy, the availability of credit in the market at low or low interest is increased. Through this, an attempt is made to keep inflation under control. Officials are trying to assure that these hiked prices will come down in future. But people are not ready to believe his words. Germany’s economy is considered strong. But now it does not seem to benefit the common citizens. Therefore, there is increasing dissatisfaction with the ongoing economic policies. If it is not resolved, then dissatisfaction can be taken seriously.

People News Chronicle

People News Chronicle author account is for interns, who are just new to our news agency. They are taught basics of wordpress and publishing through this account.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button