The former president of the Bundesbank and chairman of the INSM board of trustees, Prof. Hans Tietmeyer, commented on the current banking crisis in an interview with VDI News. The INSM documents excerpts from this interview.
In recent years, the US Federal Reserve had criminally neglected the political principle that “inflation harms the economy” and allowed bubbles to form when the banks loaned money at low interest rates.
The former president of the Bundesbank and chairman of the INSM board of trustees, Prof. Hans Tietmeyer, commented on the current banking crisis in an interview with VDI News. The INSM documents excerpts from this interview.
In recent years, the US Federal Reserve had criminally neglected the political principle that “inflation harms the economy” and allowed bubbles to form when the banks loaned money at low interest rates.
Ludwig Erhard was already aware that the subject of price stability contained a social component that could not be underestimated.
Second-class real estate loans, so-called subprime mortgages, triggered the misery. The reason is different: