Study Links High Inflation to Rise in Support for Populist Parties in Germany and Beyond
A recent study from the Institute for the World Economy in Kiel highlights the impact of unexpected high inflation on political sentiments in Germany, suggesting a rise in support for populist and extremist parties. The research, analyzing over 300 elections, indicates that inflation and economic instability can politically benefit parties on the fringes, as seen historically during the oil crisis of the 1970s and the post-COVID price surge. The study underscores a consistent trend where economic downturns shift voter support towards radical political options.