Munich Personal RePEc Archive

Effekte des Geldmarktzinses auf die Preis- und Produktivitätsentwicklung. Eine Analyse der deutschen Volkswirtschaft 1970-2014

Quaas, Friedrun and Quaas, Georg (2016): Effekte des Geldmarktzinses auf die Preis- und Produktivitätsentwicklung. Eine Analyse der deutschen Volkswirtschaft 1970-2014.

[img]
Preview
PDF
MPRA_paper_69632.pdf

Download (631kB) | Preview

Abstract

The European Central Bank is doing all it can to prevent deflation and to push inflation at the mark of two percent annually; it is currently not successful. Instead of reaching that goal, unintended side effects can be observed and new risks are evolving. Some people surmise that low interest rates on capital markets damage the productivity of an economy. This raises the question of why consumer prices have not started to rise. Standard models of neo-classical synthesis give an unambiguous answer: there is no demand as a result of a growing economy in Europe. The neo-classical paradigm is open to further, potentially more precise answers. Some people hypothesize that inflation will not come before the amount of consumption by the rich rises considerably. Both hypotheses – (i) a negative effect of low interest rates on productivity and (ii) luxurious consumption as a driver of prices – would be a surprising enrichment of the macroeconomic theory. The development of the German economy from 1970 – 2014 confirms the standard models, but not those supplementary theories.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.