Oetti
2022-01-12 07:57:12
- #1
It's not that simple. An interest rate increase ruins the highly indebted Southern European countries. That is the significant difference between the FED and ECB.
A solution to the problem is not in sight. The ECB hopes that the high inflation is only temporary... if not, we have a serious problem.
Phew, what can I say? An interest rate increase is of course a problem for some member states. But what is the solution: to provide permanently free money and thereby risk inflation getting out of control sooner or later? For some time, the money printing machine will certainly still be running, but that cannot be a permanent state - especially when interest rates are being raised around us in a globalized world.
As someone else already wrote in this thread: Depending on the financing amount, even 0.5% higher follow-up interest rates can lead to real problems.