Lea Pfefferle

The Scar of Inflation: Has Germany Left Inflation Scares Behind? Lea Pfefferle

This study looks at the inflation aversion in the European Union. Against the backdrop of the hyperinflation in Germany in 1923, the study examines the current literature on the topic. The picture painted in the media in Germany but also elsewhere suggests Germans to have a historically given inclination to fear inflation. Also, this concept is reinforced by printing pictures of people with wheelbarrows full of bills. The academic debate will introduce an overview of different inflation theories, and the societal groups that are considered to be most inflation averse. Thus, this study investigates this claim by looking at data from the Eurobarometer surveys (2003-2008). Do Germans really fear inflation more than other European countries? The study's aim is to answer this question by comparing the data from Germany, France, UK, Italy and Sweden in order to examine the inflation aversion for these countries but also for different groups within these countries.