German bank breaks anti-inflation taboo

In a marked shift from its age-old taboo of accepting higher inflation, the German Bundesbank on Wednesday (10 May) said it may tolerate a devaluation of the common currency to help out crisis-hit countries suffering under a strong euro.

Jens Ulbrich - who heads the economics department for Germany's central bank - told a public hearing in Berlin that it would hurt to weaken his country's powerful export model and to loosen its national financial policies just to help other countries. <...