German Central Bank Policy Crucial for European Economic Stability
The article discusses how central banks, like the one in Germany, aim to keep prices stable to prevent hyperinflation. A low inflation rate in Germany is important for the European Monetary System. The central bank's role in fighting inflation depends on its power and available tools. Economic theory doesn't always give clear guidance, so central banks have flexibility in making decisions. The society's belief in stability and the central bank's credibility affect how successful anti-inflation policies are.