IFO's Fuest Sees No Danger of German Economy Overheating

The video discusses the potential impact of delays in forming a settled government on consumer confidence and the economy, suggesting that a delay of two to three months is not concerning unless it indicates a systemic issue. It also addresses concerns about the German economy, such as inflation and overheating, noting that while there is a strong economic boom, there is no significant wage growth or high inflation rates. The discussion highlights that capacity constraints exist in some sectors, but the economy is not overheating.

What factors could indicate that the economy is moving towards overheating?

What capacity constraints are mentioned in relation to the economy?