Europe will be facing a recession. The question is whether or not rising unemployment will come with higher or lower inflation rates—and monetary conservatism or monetary expansion.
The twin villains of high inflation and high unemployment have not left Europe. They are just taking a nap under a pile of moderately optimistic economic data.
With a marginal burden of around 50% of gross income under Germany’s taxation and transfer system, people with middle incomes effectively end up with only half of every euro they earn, a study shows.
