Due to the sound economic development in the euro area and higher inflation it was high time to start the exit from the expansionary monetary policy, the experts write in their economic forecast for 2018 and 2019. In their opinion, the communication of a normalization strategy is extremely important in order to avoid distortions on the financial markets.
The ongoing expansionary monetary policy also leads to a situation where production capacities are over-utilized in Germany, the experts warn.
Currently, the members of the German Council of Economic Experts are Christoph M Schmidt (chair), Peter Bofinger, Lars P. Feld, Isabel Schnabel and Volker Wieland (until the end of February).
Economic Forecast 2018 and 2019 (PDF)
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