@B_Eichengreen I have the same concerns like @MaxJerneck. Plus banks may be reluctant to give out loans when equity is scarce.
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@B_Eichengreen but an increase in German wages should encourage German demand too, and 3% cost increase is not 22% -
@B_Eichengreen moreover we need to rebalance: less inflation in Germany means more deflation in the perihery. Is the latter to be preferred?
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@B_Eichengreen Isn't large parts of the periphery in a balance sheet recession?Demand for loans should then not increase with more liquidityThanks. Twitter will use this to make your timeline better. UndoUndo
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