Volker Wieland sees European Central Bank still a long way from achieving its goal in fighting inflation (Mex)

With demands for high wage increases, such as the current 15 percent for postal workers, employees are trying to cushion the effects of high inflation in collective bargaining. Prof. Volker Wieland sees parallels to the development in the 1970s, but in an interview with the consumer magazine "Mex," Hessischer Rundfunk, (from 5:40 min.) is skeptical about the reaction of the European Central Bank (ECB).

At the time, the Bundesbank stopped the wage-price spiral by massively raising interest rates, Wieland said. "That is also its task, it has to fight inflation." Whether the ECB will succeed as quickly is questionable, he said. "In any case, we are still a long way from that in terms of raising interest rates," Wieland said. "Interest rates today are much lower than they were then."

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