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Economist: 'No eurozone inflation risk'

The Local · 7 Oct 2012, 12:45

Published: 07 Oct 2012 12:45 GMT+02:00

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"I don't see an increased risk of the currency depreciating," executive ECB board member Jörg Asmussen told the weekly Bild am Sonntag.

Asmussen said ECB forecasts acted on the assumption that "inflation will again fall below two percent next year." The ECB also guarantees that the euro will be a stable currency in the future, he added.

"Nobody should worry about that," Asmussen said, adding that since the introduction of the single currency in 2002 eurozone inflation had been hovering around two percent.

Inflation in Germany where EU steps taken to help struggling eurozone members, including the ECB's bond-buying policy, are not widely accepted, inflation stands at 1.6 percent, he told the paper.

"This is less than at the time of the Deutsche Mark," he added.

Story continues below…

Higher eurozone inflation in September of 2.7 percent from 2.6 percent in August was due to rising energy prices. Asmussen spoke amid fears in Germany that the rescue of the euro could lead to spiralling inflation.


The Local (news@thelocal.de)

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Your comments about this article

18:04 October 7, 2012 by Englishted
"The ECB also guarantees that the euro will be a stable currency in the future, he added."

Guaranteed with what?

It is not inflation that is the fear it is rocketing unemployment across Europe and a good way to reduce it is with a little inflationary growth.
19:07 October 7, 2012 by IchBinKönig
I guess this is why the Greek PM likened his situation to the Weimar Republic = No Inflation.
11:44 October 8, 2012 by elboertjie
Around 2% inflation per year?! Where does these guys buy their food?!

Since 2002, the Euro has weakened by 420%, so these people are either clueless as to what currency is and how it works or they are merely tools used for spreading propaganda.

The value of paper money is measured not against other paper money, but against physical assets and the best measure for this is against gold.

if two paper currencies, euro and US dollar for example, are measured against each other, one only measures how much one is falling relative to the other paper currency, but both are falling. Both are falling, because this is the nature of fiat currencies: more of them are created over time (especially over the last few years for all the bailouts) so they eventually reaches their intrinsic value of zero.

Look at history, how many fiat currencies (not backed by gold or gold standard) has survived? Not a single one, but gold has also had its value, even the ones from thousands of years ago.
13:28 October 9, 2012 by truth is treason
The spike in German Inflation blamed on energy prices in August "Higher eurozone inflation in September of 2.7 percent from 2.6 percent in August was due to rising energy prices. Asmussen spoke amid fears in Germany that the rescue of the euro could lead to spiralling inflation". Well there are more energy prices rises coming to pay for the Tax payer Subsidy and tax increase for paying for Green Energy. Comparing the EURO to the DOLLAR both central banks are printing money and devaluing each currency so when the dollar falls by 5% then the EURO falls by 6% then the difference between the two is 1%. Ignore the 5% drop. Inflation is coming but it will be blamed on a war or Food prices not the ECB and Bailouts
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