ECB's QE, NAIRU and Merkel's immigration policy

Merkel, hopeless

Just a random thought.

ECB chief economist Peter Praet: If you print enough money, you will always get inflation.

Let's leave aside that he does not understand what creates inflation. The ECB's aim is a 2% inflation rate.

The NAIRU, the Non-Accelerating Inflation Rate of Unemployment (NAIRU) is the unemployment rate consistent with maintaining stable inflation. According to the standard macroeconomic theory, inflation will tend to rise if the unemployment rate falls below the natural rate.

Now let's bring Merkel's immigration policy into the equation and fat German labor minister Nahles' latest assessment on all those foreigners flocking into Germany and elsewhere.

Nahles sees the vast majority of refugees as unemployable for years.

So if you believe in the policy of the ECB and believe that NAIRU has any scientific value and is not a jargon, then Merkel's immigration policy is clearly undermining all efforts of the ECB.

What does Mario say?