Bloomberg News

Issing Says ECB Can’t Accept Higher Inflation, Handelsblatt Says

May 25, 2012

Former European Central Bank Chief Economist Otmar Issing said the ECB shouldn’t give in to calls of temporarily allowing higher inflation to ease countries’ reform efforts, Handelsblatt newspaper reported.

While Germany can make a big contribution to reducing current-account imbalances in the region with stronger-than- average growth and inflation, exaggerated wage increases would before long result in rising unemployment and slower growth, Issing said in an opinion piece published today.

To contact the reporter on this story: Jana Randow in Frankfurt at jrandow@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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