Banks in Europe and America are currently gripped by a great deal of uncertainty. The 42nd ifo and FAZ Economists Panel focuses on the current turmoil in the financial system. The survey, in which 132 economics professors participated, was conducted from March 23 to March 30, 2023.
The energy crisis resulting from the Russian war of aggression and the associated price increases are putting a strain on the German economy and population. Although the German government’s relief packages can cushion the impact of the crisis, they are at the same time exacerbating the strain on public budgets in the wake of the Covid-19 pandemic. In its annual report of November 9, 2022, the German Council of Economic Experts therefore proposed a temporary increase in the top tax rate, the introduction of an energy solidarity surcharge for top earners, and a postponement of the reduction of bracket creep.
The inflation rates in Germany and the euro area, which are currently well above the inflation target set by the European Central Bank (ECB), are dominating the current monetary policy debate. There are increasing signs that the higher inflation will last longer than originally expected by most economists and members of the central banks.