The current June Bundesbank Monthly Report contains an article on the debate about raising the inflation target. Those in favour of this argue that a higher target rate of price increase would provide central banks with more room for manoeuvre for monetary policy countermeasures in times of crisis. The Bundesbank’s economists contend that the negative implications of a higher inflation target are largely being ignored in this debate.

At the end of the second quarter of 2018, the financial assets of households in Germany stood at €5,997 billion. Compared with the first quarter of 2018, this represents an increase of €80 billion or 1.4%. Investors continued to favour liquid investments as well as forms of investment that are perceived to be low risk – with inflows of €43 billion, currency and deposits saw the largest gains, and claims on insurance corporations also recorded significant inflows amounting to €18 billion.