I’d like to talk about when the German economy might find its way out of the crisis, how inflation is set to develop, and the role that monetary policy needs to play in what might be the final act of this drama. 2 Outlook for economic activity and prices in Germany The pandemic is continuing to shape economic developments in Germany.
For over a year now, the waves of infection and protective measures have been a key factor behind the steep fluctuations in activity levels. But that’s not to say that all economic sectors have been affected to the same extent.