Thomas Mayer, a former chief economist at Deutsche Bank, predicts that the euro is about to suffer steep losses.
In his interview with Deutsche Wirtschafts Nachrichten, Mayer noted that the single European currency is becoming increasingly unstable, which will inevitably result in its collapse. The euro is being weighed down by a sustained period of higher inflation. This could destroy the euro as a currency, the economist said. He also criticized the monetary policy of the European regulator. “At this time, the European Central Bank continues to print banknotes and cannot – and probably does not want to – influence the situation,” Mayer stated.
Deutsche Bank's former chief economist warned the German government that prolonged inflation could have not only economic but also political and social consequences. According to him, Germany's hyperinflation of the early 1920s helped the National Socialists seize power. The euro instability may push people to look for an alternative to the official currency. Thus, it is likely to face a collapse, the expert summed up.