Monetary policy in the corona crisis (Phoenix Plus)

In the Phoenix documentary "Threats of a financial crash after corona", Prof. Volker Wieland explains the effects of central bank monetary policy and debt in the corona crisis.

"The central bank practically creates money by buying assets, i.e. government bonds, from the banks and providing them with liquidity," said Wieland. "At the moment, this is not creating inflation, because we are in a recession. If the central bank continues this policy for three or four years, it will create inflation, and then the central bank will have to reduce these government bond holdings again," Wieland said.

Phoenix Plus: "Droht nach Corona der Finanzcrash?"