IMK Study 83-10
Inflation and counter-inflationary policy measures: The case of Germany
In Germany the policy response to the inflationary surge was initiatlly rather hesitatnt. The third packae of measures, including a gas and electricity price brake, though, mean a substantial stabilisation of incomes and demand, particularly in 2023. Measures were inadequately targeted, however. While a formal social pact was not reached, government measures have encouraged collective wage bargainers to reach settlements that do avoid a price-wage spiral.