This has been inherited partly from past achievements, but these achievements have to be secured by our current and future decisions. These considerations are highly relevant in the current situation, too. Concluding remarks In general: An important way an oil price shock can lead to permanently higher inflation rates is through monetary policy accommodation.
That therefore slows down the economy and can lead to a self-reinforcing downward spiral. But we’re not seeing that in Germany at all. People are consuming, employment is high and companies are doing well. And we want it to stay that way. But even in this country inflation has fallen noticeably.