It is, at least in part, to counter that risk that central banks in a number of countries have kept interest rates very low and used unconventional monetary policies, such as quantitative easing, to provide additional stimulus to their economies. History has taught us that deflation usually comes in the wake of a financial crisis.
Above all, though, Hans Tietmeyer’s time at the Bundesbank was marked by preparations for Monetary Union. His tireless support for rules ensuring the stability of the single currency has proved to be entirely justified.