However, if the economy continues to grow at a rate exceeding its potential, resource utilization, namely in labor and production capacity, will increase further. In such a situation, it is expected that supply and demand conditions for consumer goods and services will further tighten and that this will exert upward pressure on consumer prices as more firms pass on higher costs to consumers.
However, the side effects of continuing this policy are becoming ever more apparent. We need to respond. 3. Challenges in a topsy-turvy world So you see, So you see, I share the assessment of the majority of Germans – sooner or later, artificially maintaining low interest rates will lead to a topsy-turvy world.