Kahn, R. (2014) “Lowflation: Should We Fear Stable Prices?“, Global Economics Monthly: June 2014, Council on Foreign Relations, 10 Ιουνίου.
Overview:
Bottom Line: Low inflation may be symptomatic of deeper problems, such as inadequate demand or central bank policy failures. The costs of low inflation could be high for European economies.
There is a new Washington consensus, and it consists of a simple message: low inflation threatens the global economy. A weak and disappointing economic recovery feeds the concern, especially at a time when inflation is below targets and near zero in many countries. When did price stability change from a goal to a problem? Is too little inflation a symptom or cause of what ails us?
Throughout the industrial world, debate rages over the causes and meaning of the chronically low inflation in the major industrial economies. Since the end of the Great Recession, central banks have seen inflation fall below their targets, despite unorthodox monetary policy aimed at jump-starting demand. Inflation is well below 2 percent in the Group of Three, or G3 (United States, Japan, and the eurozone), as well as in some Asian emerging markets. Though G3 inflation surveys show expectations anchored around 2 percent, bond yields have fallen this year as market participants bet on very low inflation going forward. These low market interest rates now seem at odds with the surveys.
Σχετικές αναρτήσεις:
- Moqhadam, R., Teja, R. and Berkmen P. (2014) “Euro Area – Deflation Versus Lowflation”, iMFdirect Blog, 4 Μαρτίου.
- Anastasatos, T. & Stamatiou, T. (2014) “Is Deflation a Risk for Greece?“, Economy and Markets, Eurobank Research, Vol. IX, Issue 3, Απρίλιος.
- Fatas, A. (2014) “The Price is Wrong”, Antonio Fatas on the Global Economy Blog, 14 Απριλίου.