Volker Wieland advises ECB to take into account broader inflation measures (MNI News)

According to Prof. Volker Wieland, the European Central Bank's (ECB) monetary policy should not only be based on the consumer price index (HICP). If other inflation measures such as the GDP deflator developed in a more favorable way than the HICP, the ECB should include this in its considerations and communication, he said in an interview with the news agency MNI News.

"They could have pointed to the increase in broader inflation measures such as the GDP deflator  and forego restarting government debt purchases", he said.

Regarding the current economic situation in Germany, Wieland is confident. "The probability of a recession, that is a broad-based decline in economic activity, has gone down a little bit". However, in Wieland's opinion, over-regulation continues to hinder growth. The move to a digital economy requires more flexible labor market rules, he said. Also corporate taxes are too high in Germany, according to Wieland. "The key thing to stay successful is to allow them to adjust to the news challenges".

MNI News:
"ECB should consider other price data: German wise man"
"Over-regulated Germany may dodge recession"