Date: 2nd May 2022
Author: BETTER FINANCE
Type: Press Releases
21 April 2022 | Financial repression poses a major problem for the protection of savers: policymakers must act and stop using savers’ cognitive biases to their detriment.
Facts | On average, over the last 30 years, annual increases in consumer prices („inflation”) have averaged +2% for the euro area[i], a historically very low level. Nonetheless, this means that the real value (purchasing power) of all long-term or pension savings has almost halved since 1992.
Since last year (2021) it is getting much worse, with a sharp rise in inflation, and with real interest rates (= nominal minus inflation) even deeper into negative territory.