De Sousa, C., (2013), “Easing now or later? – That’s the ECB’s question”, Bruegel, 06 Νοεμβρίου.
October euro area annual overall inflation is expected to be 0.7% (the lowest in 47 months and down for the fourth consecutive month), while core inflation (excluding energy, food, alcohol and tobacco) is estimated at 0.8%; down from 1.1% and 1.0% in September respectively, according to a flash estimate from Eurostat This is below but far from the 2% target.
At the same time the euro touched an almost two year maximum against the dollar two weeks ago reaching 1.38 against the dollar (25 months maximum on a weighted basis against its 12 major trading partners); of course the euro is a freely floating currency, thus the resulting loss of competitiveness that weighs on the euro area recovery is not of the ECB’s concern, but an appreciation of the euro puts further downward pressure on inflation as imports become cheaper and there is a pass-through effect.
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Σχετικές Αναρτήσεις
- Den Haan, W. ed., (2013), Forward Guidance: Perspectives from Central Bankers, Scholars and Market Participants – A VoxEU.org eBook, London: Centre for Economic Policy Research.
- Ciccarelli, M., Maddaloni, Ang., Peydró, J-L., (2013), “Heterogeneous transmission mechanism: monetary policy and financial fragility in the Eurozone”, Economic Policy, Vol. 28, Issue 75, pp. 459-512.
- Eichengreen, B., (2013), “The ECB Grows Up”, Project Syndicate, 9 Αυγούστου.