Joachim Nagel: Monetary policy in times of geopolitical crises and high inflation

Speech by Dr Joachim Nagel, President of the Deutsche Bundesbank, at the European School of Management and Technology (ESMT), Berlin, 30 August 2022.

The views expressed in this speech are those of the speaker and not the view of the BIS.

1 Introduction

Ladies and gentlemen,

The topic of money is one we hear cropping up in popular music again and again, often accompanied by a critical undertone. I'll give you three examples. Liza Minnelli sang money makes the world go around. Pink Floyd incorporated the sound of a cash register into their song "Money". And then of course there's ABBA, with the lyrics money, money, money, must be funny, in the rich man's world.

What links the three tracks is the period they emerged from: all three were composed and hit it big in the 1970s. And it's probably no wonder. After all, that was a time when the purchasing power of money took a major tumble. And people were feeling what it meant not to have a stable currency.

The bands Pink Floyd and ABBA were at the peak of their careers in the 1970s. And both bands have recently reappeared on the scene:

Just over four months ago, Pink Floyd released a new single to offer support to Ukraine as it defends itself against Russia's war of aggression.

After an almost 40-year hiatus, ABBA brought out a new album last November. In the first week after its release, it sold more copies in Germany than the rest of the top 100 combined. A hologram tour went on the road three months ago, with ABBA appearing as digital avatars on stage.