Central bank money – typically cash but also the electronic settlement accounts we operate with large institutions – provides an anchor of value for people to trust and go about their business. Our cash also provides a one-for-one exchange for the private (commercial bank) money sitting in our personal accounts.
For one thing, Germany needs a state-of-the-art digital infrastructure and an education system that gives as many people as possible the necessary skills to make the most of the new technologies. For another, flexible labour and product markets combined with a fit-for-purpose social safety net will actually enable workers to switch to the most productive areas of the economy.