Breaking a German Taboo: Bundesbank Prepared to Accept Higher Inflation

10-May (Der Spiegel) — Germany’s central bank has indicated it may tolerate higher inflation in Germany as the price of rebalancing economies within the euro zone. The move marks a major shift away from the Bundesbank’s hardline approach on price stability. Economists have hailed the decision as a “breakthrough.”
Info

Inflation is a political hot button issue in Germany, where the hyperinflation of the early 1920s has not been forgotten and many people still have a deep-rooted fear of their money losing value. Now Germany’s central bank, the Bundesbank, has made waves with signals that it is willing to tolerate higher inflation.

[source]