ECB’s Schnabel: Fears of stagflation unfounded
While it is increasingly hard to make predictions on the slowdown of inflation, the European Central Bank (ECB) finds any fears of stagflation to be unfounded, Member of the Executive Board of the ECB Isabel Schnabel (pictured) said on Wednesday.
Even though economic recovery from the pandemic has been inconsistent both in Europe and globally, Schnabel finds the current pace of recovery to be “extraordinary”. Citing ECB staff estimates, Schnabel emphasized exceptionally strong demand “outpacing pre-pandemic supply.”
“Incoming data over the past few weeks, however, suggest that economic activity globally and in the euro area has started to moderate. Given the exceptional pace of expansion over the summer, a moderation was to be expected,” said Schnabel, dismissing the data as evidence in favor of the stagflation argument.
Get involved!
Comments