Today comes the new data on inflation (for August) in the euro zone – it should rise to 9% and thus put further pressure on the ECB. Now the US Federal Reserve is rushing ahead with interest rate hikes – so the ECB has to “lag behind” and will probably have to raise interest rates by at least 0.5% next week. But all of this happens too late: energy prices have exploded, people’s inflation expectations are skyrocketing, also because the ECB has obviously not been concerned with inflation for a long time, but with financing the southern countries of the euro zone (and still is? ). Now ECB Council member Isabel Schnabel fears that confidence in the money is in danger of being lost – for which the European Central Bank has done a lot.
Notes from video:
1. Energy prices plummet across Europe as EU plans to intervene
2. Energy crisis: EEX electricity exchange strictly rejects trading freeze and price cap
3. Video “Russia is exporting oil and gas to EU countries at full speed – Germany is paying”
4. Boom & Bust: “Energy crisis – are we Germans crazy?” with Andreas Steno Larsen
