Last year, large central banks financed their countries' new debt on a big scale. The European Central Bank was particularly active.

“Inflation is temporary and central banks have it under control” Vs. “As central banks have massively increased money supply inflation is around the corner”. The fate of central banks will depend on which narrative will win.

The impact of the second lockdown has so far been less severe than the first lockdown. Simple calculations show that in 2021-Q1 GDP could fall by 4.4% QoQ in the USA and by 6% in the euro zone.

Anyone who bought a bitcoin for €19,497.40 on 16 December 2017 lost 83 per cent of their stake in a year and was still sitting on a 74 per cent loss on 16 March 2020. But those who remained loyal could double their stake by mid-January 2021.

We look back on the turbulent year 2020. The Flossbach von Storch Research Institute has closely followed the changes in the economy, politics and society.

Although the first vaccinations have begun, the Coronavirus pandemic will continue to have a decisive impact on the coming year. This is indicated by the data of our "Real Economy Tracker".