Germany racked up one economic success after another for most of this century. But the loss of Russian natural gas due to the war in Ukraine has dealt a severe blow to its industry through higher energy costs.
Even expanding the money supply doesn’t “magic money up out of the air” in the sense to which I’m referring.
If the ECB expands the money supply, it generates inflation. That effectively taxes everyone holding euros or euro-linked assets and transfers the real wealth associated with that to whoever winds up with the new money being created.
Even expanding the money supply doesn’t “magic money up out of the air” in the sense to which I’m referring.
If the ECB expands the money supply, it generates inflation. That effectively taxes everyone holding euros or euro-linked assets and transfers the real wealth associated with that to whoever winds up with the new money being created.