Nowotny: „Not Afraid of Inflation“

People ♦ Published: November 20, 2012; 17:49 ♦ (Vindobona)

Ewald Nowotny, governor of Austria´s Central Bank (OeNB) thinks that the danger of a stagnating economy is bigger than the danger of an increasing inflation.

Nowotny: „Not Afraid of Inflation“ / Picture: © Wikipedia / Christian Wirth (Wirthi)

Nowotny: “I am not afraid of inflation, but rather of stagnation. Unfortunately, the stagnation scenario cannot be excluded in Europe.” At least, Austria and Germany do not need to fear an increase of inflation.

However, the political instability in the Middle East may cause a sudden increase in energy prices, Nowotny says. In the past, energy prices were the main driver of…