Europe's largest economy has flatlined recently, showing no signs of recovery from a winter recession. The International Monetary Fund has predicted Germany will be the only major advanced economy to shrink in 2023.
Just today I read that ECB could increase the interest rate again, because the inflation rate is too high in Germany. From my limited understanding of economy, cutting taxes can only raise the inflation?
Just today I read that ECB could increase the interest rate again, because the inflation rate is too high in Germany. From my limited understanding of economy, cutting taxes can only raise the inflation?
No, no, it only leads to inflation when taxes are cut for the working class, you see.