The nightmare of stagnant inflation

The German-language press comments on the economic and diplomatic aspects of the war in Ukraine. FAZ is ringing the alarm bell for the European economy.

“Stagnant inflation” is the title of her comment Frankfurter Allgemeine Zeitung (FAZ) reviving memories of the oil crisis of the 1970s and warning of an explosive mix of galloping inflation and rising unemployment in the eurozone: “The economic consequences of the war in Eastern Europe will be borne by the EU. It was called the ‘oil stagnation’, which emerged after the ‘oil shock’ of 1973, when the devaluation of money spread from the energy sector to the whole economy. The best way to fight inflation is to raise interest rates. years some countries had resorted to the devaluation of x verb, hoping to support their economy. The result was inflation rates of 23% in Japan, 19% in Italy and 16% in the UK.

For the same subject the Rheinische Post “Due to the war in Ukraine, there is a risk that the recovery of the economy, which we have been looking forward to for months, will slow down or not even come to fruition. Stagnation or even a recession seems more likely. inflation and economic stagnation, would bring the European Central Bank (ECB) to a dilemma: Raising interest rates or reheating growth?

“Expropriate them oligarchs”

“Expropriate the oligarchs” is the title in the comment of the financial inspection Handelsblatt“This is the culmination of audacity. Many of the Russian oligarchs act as if they were not an integral part of the regime or even as Putin of “notes the columnist. He continues: “Do they think that none of the politicians in the West know the flow of their money? That no one has seen the detailed and accurately substantiated investigations of the ‘Anti-Corruption Fund’ conducted by the convicted of forced labor Alexei Navalny? In them, his courageous team of associates has proven, after a thorough investigation, who finances the prime minister’s multimillion-dollar villas, who controls the fake state media, who maintains the mistresses of Putin and Sergei Lavrov (who have also been sanctioned). with real estate, aircraft and cash “.

The Swiss New Zürcher Zeitung (NZZ) focuses on the synergy of Russian oligarchs with the Swiss bank Credit Suisse. “Credit Suisse has allegedly financed the purchase of private jets for Russian oligarchs, who were later sanctioned by the United States. Once again, the bank has failed to downplay the issue and cover up leaks,” he said. The Zurich newspaper notes that the bank “reportedly wrote a letter to investors a few days ago destroying advertising material for luxury mortgages. “. Where did the mortgages finally go? Citing the Financial Times, the Swiss newspaper notes that “part of the risk was gradually transferred to hedge funds, within a portfolio of two billion dollars and apparently with an attractive interest rate of over 11%.”

“Balances“ Erdogan in Ukraine

The role of Turkey in the Ukrainian crisis is mentioned in the General-Anzeiger newspaper in Bonn. Among other things, we read: “Already during World War II, Turkey insisted on its neutrality, in order to join the victorious forces shortly before the end of the war. Erdogan is doing something similar today. He says he does not want to lose Russia either. The longer Russia’s war with Ukraine lasts, the harder it will be to strike a balance. to break free from the dilemma by banning all warships from crossing the Turkish Bosphorus, while not participating in sanctions against Russia. This strategy may work for a while, but at some point Turkey will have to explain to the West, “Because the Russian air force continues to use Turkish airspace as if nothing is happening.”

Giannis Papadimitriou

Source: Deutsche Welle