3Mon
There must be something positive about a recession like this.
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@Epi What does the fact that our inflation is the lowest in the world have to do with the rather poor global economic development?
Recession doesn't only exist here
Recession doesn't only exist here
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@leveragegrinding Well, after a temporary supply shortage (energy crisis as a result of the war in Ukraine), Germany as an economy has reduced demand, which had already fallen, even further and permanently through appropriate policies. So it is only logical that we are (A) in a recession and (B) have relatively low prices.
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•3Mon
@leveragegrinding Poor economy > falling demand > falling prices. This is also the reason why central banks can or must lower interest rates during recessions.
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•@Epi I take the blame for asking the question incorrectly😂:
Of course recession is related to inflation, but Austria, Estonia, Hungary, for example, have had worse economic development in 23, but we are still by far the most successful at the moment in terms of fighting inflation. The fact that we are doing better here than the other countries in recession doesn't have to be a bad thing; a recession in a large export economy is not really unexpected after Russia's dependence.
@JohannesWo
In addition, I always understand all these recession theories, we are an export economy that is experiencing pressure from China, is having some problems due to the Ukraine crisis and is also not growing so quickly by high % due to the existing economic scope...
The dependency on Russia is probably the biggest cause of the partial decline in the expansion of industry here, because it has caused the high energy prices... In your opinion, to what extent is German policy now influencing demand?
Of course recession is related to inflation, but Austria, Estonia, Hungary, for example, have had worse economic development in 23, but we are still by far the most successful at the moment in terms of fighting inflation. The fact that we are doing better here than the other countries in recession doesn't have to be a bad thing; a recession in a large export economy is not really unexpected after Russia's dependence.
@JohannesWo
In addition, I always understand all these recession theories, we are an export economy that is experiencing pressure from China, is having some problems due to the Ukraine crisis and is also not growing so quickly by high % due to the existing economic scope...
The dependency on Russia is probably the biggest cause of the partial decline in the expansion of industry here, because it has caused the high energy prices... In your opinion, to what extent is German policy now influencing demand?
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@leveragegrinding Every government expenditure generates demand. If the state now spends less money relative to revenue, demand falls. I know this is simplified, but it is clear that the state has an influence on demand through its budget
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@JohannesWo ok maybe I judged your statements too much because of other comments, my bad
I thought it sounded like this typical bashing, but apparently it wasn't.
I thought it sounded like this typical bashing, but apparently it wasn't.
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