•  According to our empirical studies, the current weak credit growth in Germany is not due to a general credit crunch but mainly to low demand for credit. •  Furthermore, the liquidity situation in Germany as well as in the euro area as a whole is favourable. However, concerns remain about the prospects of continued stagnation at stable prices.
The establishment of markets for long-term nominal government and corporate debt in countries in which they did not exist a decade ago is powerful evidence of the faith that investors place in a future environment of price stability. Broader economic benefits The economic benefits of price stability are too numerous and well known for me to cover here in detail.