Berlin Isabella Weber, a German economist working for the US University of Massachusetts Amherst, had already proposed a gas price brake in February. The federal government is now following this model, in which consumers are to have around three-quarters of their gas consumption capped by the state. Weber has finally achieved her goal.
From the point of view of Clemens Fuest, President of the Munich Ifo Institute, this is anything but good news. He fears that the gas price brake will do more harm than good. In the Handelsblatt, the economist and the economist argue about savings incentives, accuracy, costs and the inflationary effect of the brake.