| Author (Person) | Atkins, Ralph, Wiesmann, Gerrit |
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| Series Title | Financial Times |
| Series Details | 11.5.12 |
| Publication Date | 11/05/2012 |
| Content Type | News |
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On the 9 May 2012 Germany's central bank indicated it may tolerate higher inflation in Germany as the price of rebalancing economies within the euro zone. The move marked a major shift away from the Bundesbank's hardline approach on price stability. Economists hailed the decision as a 'breakthrough'. Article reported that Wolfgang Schäuble, German Finance Minister, gave vital political cover to the Bundesbank on the 10 May 2012, speaking out in support of the idea that Germany could tolerate a rate of inflation above the eurozone average. Making a rare exception to the rule that Berlin does not comment on central bank policy, Mr Schäuble declared that price rises 'in a corridor between 2 and 3%â would be 'tolerable' in Germany â slightly above the European Central Bankâs target of keeping average inflation across the eurozone at close to but below 2% |
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| Countries / Regions | Germany |
