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German Finance Minister Addresses Inflation and Financial Stability

German Finance Minister Christian Lindner stressed the importance of central banks considering the risk inflation poses to financial stability. Speaking at an event of the association of German banks, Lindner emphasized that inflation affects the financial system and the economy as a whole.

Christian Lindner, German Finance Minister
Christian Lindner, German Finance Minister

Fiscal Policy and Monetary Policy Alignment

Lindner urged that fiscal policy should not contradict monetary policy and called for consolidating public finances. He believes aligning both policies is essential in maintaining a stable economic environment.

Emphasis on Structural Reforms for Growth

The German Finance Minister argued that subsidies do not answer current economic challenges. Instead, Lindner suggested focusing on structural reforms to promote growth and strengthen the economy.

Confidence in German Financial Stability

Despite recent banking turmoil in the U.S. and Credit Suisse, Lindner assured that there is no reason to worry about financial stability in Germany. He confidently stated, "There isn't a banking crisis," highlighting the strong capital basis of German banks.

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