Deflation danger in Germany and the monetary policy of the ECB

Since Spring 2003, a discussion has arisen among economists on the danger of deflation worldwide. The recently published study of an IMF Task Force placed these worries on the economic-policy agenda, in particular in Germany. Dr. Georg Erber, German Institute for Economic Research, Berlin, spells out what the European Central Bank and the German Federal Government can to do to counter these dangers in Germany.