Frank Wiebe on Inflation as a Solution to Current Crises
“Sometimes, however, such discussions seem like the judgments of doctors who only see the symptoms and do not understand the disease. Ultimately, the problem is: We have two crises, Covid and war, and have to somehow distribute the consequential costs. The chosen solution is: We distribute them as widely as possible – through inflation -, and stretch them over the years – through higher government debt. One can consider this wrong or dangerous because it is anything but trivial to keep inflation under control in the end. But the question is always: What would be the alternative? Anyone who does not comment on this is basically refusing to understand the problems in their entirety. “
– Frank Wiebe, Handelsblatt Chief Financial Commentator, in “Inflation is only the symptom – The double crisis of Covid and war is expensive. This can be prevented.”, Handelsblatt, November 1, 2022, page 18, No. 211
