1Yr·

Just good news for once:

Germany world champion in fighting inflation

https://www.businessinsider.de/wirtschaft/inflationsrate-deutschland-weltweit-am-erfolgreichsten-gegen-inflation-grafik-deutsche-bank-matisch-gespeicherter-entwurf/

The most amazing thing for me is the publication of Business Insider, even though they belong to the Springer Group. I am surprised. In the last few months, it had already slipped into populism.

#inflation

25 Comments

Epi@Epi

1Yr

There must be something positive about a recession like this.

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Moritz@leveragegrinding

1Yr

@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

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Johannes@JohannesWo

1Yr

@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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Epi@Epi

1Yr

@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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Moritz@leveragegrinding

1Yr

@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?

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Johannes@JohannesWo

1Yr

@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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Moritz@leveragegrinding

1Yr

@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.

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Dussel D.@DusselDuck

1Yr

Thank you for the positive news!

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Arroganter F.@werhatdemwirdgegeben

1Yr

Where are all the traffic light haters now?

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Sparfuchs@Reinecke

1Yr

With all the bankruptcies and short-time working, it's no wonder.

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Staatsmann@Staatsmann

1Yr

@Reinecke Insolvencies have been falling in recent years and in April 2022 the exemption from the obligation to file for insolvency was ended.
Of course there is now an increase 🤷🏼‍♂️

https://www.ifm-bonn.org/statistiken/gruendungen-und-unternehmensschliessungen/unternehmensinsolvenzen

Whereas in 2011 there were 9.4 insolvencies per 100 companies, the figure is now 4.8.

https://www.destatis.de/DE/Themen/Branchen-Unternehmen/Unternehmen/Gewerbemeldungen-Insolvenzen/_inhalt.html

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Moritz@leveragegrinding

1Yr

@Staatsmann NO NO NO BUT THE TRAFFIC LIGHTS HAVE TO GO BECAUSE THAT'S WHAT IT SAYS IN THE BILD AND THE FARMERS SAID SO TOO!11!

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devnerd_daddy@devnerd_daddy

1Yr

@Staatsmann @leveragegrinding Exactly, thanks for the clarification ❤️

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Leo@DasistderWeg

1Yr

@leveragegrinding AWAY WITH THE TRAFFIC LIGHTS😂😂🍿

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Sparfuchs@Reinecke

1Yr

@Staatsmann Just take a look at the current short-time working statistics at the ARGE. In the course of the energy transition, many suppliers have switched from combustion engines to electric. This is now not being accepted and the plants are burning a hole in their balance sheets - in the long term, they will all have liquidity problems. You can also see that short-time working is on the rise again. If the supplier industry collapses, this will also be to the detriment of mechanical engineering and tool suppliers. Even our employees are putting investments on hold and are being frugal with their vacations because at least one acquaintance in the area is affected by insolvency. The mood is getting worse and we also had 22% less turnover last year than in 2019, even though we have invested 30 million in new projects over the last 3 years. So I would say the recession is the reason for the fall in inflation rather than the traffic light policy.

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Marty G.@Der_Geldsammler

1Yr

I think this graph is questionable, the USA ranks close to Russia (where no one can really verify the effects of the sanctions and the war) in terms of the highest inflation, but at a different pace of development? Germany is supposed to be much further ahead in terms of inflation/effectiveness?

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Moritz@leveragegrinding

1Yr

@Der_Geldsammler Read article. And graphics too, the respective explanation is on the axes.

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Marty G.@Der_Geldsammler

1Yr

@leveragegrinding You're right, I skimmed the article but missed the USA part, I take it all back

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Moritz@leveragegrinding

1Yr

@Der_Geldsammler all good :)

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Testo-Investor@Testo-Investor

1Yr

The main thing is that you don't write that the Greens are doing anything *positive* for this country :D

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Moritz@leveragegrinding

1Yr

@Testo-Investor have no connection to politics, purely economic. No idea where this has anything to do with the Greens

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Testo-Investor@Testo-Investor

1Yr

@leveragegrinding no, that was just a joke.... :) The Greens are not doing anything at all to improve inflation ;)

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Arroganter F.@werhatdemwirdgegeben

1Yr

@Testo-Investor right, the fdp makes fiscal policy and the ECB monetary policy, neither of which is green ;-)

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Ben@WuffWuff

1Yr

Despite the text, I'm a bit too stupid. Can someone explain this to me using the US marking on the X axis at approx. 40?

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Moritz@leveragegrinding

1Yr

@WuffWuff the graph shows both the level of inflation and the speed of change

Germany has little and it is now only falling slowly, which is good

US has high and it is falling at a normal rate
US still has high but it is falling quite fast

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