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Last October the eurozone inflation rate dropped below 1 percent and has remained there ever since (Photo: artemuestra)

The ECB and low inflation: no such thing as conventional policy

The eurozone has been suffering from record low inflation for several months now. Last October the inflation rate dropped below 1 percent and has remained there ever since.

This low pace of price increases is dangerous because it undermines growth and makes our debt piles even more difficult to handle. The situation is beginning to resemble the ‘lost decade’ that Japan endured in the 1990s.

After a long period of hesitation, the European Central Bank (ECB) finally seems ready to ...

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Disclaimer

The views expressed in this opinion piece are the author’s, not those of EUobserver
Last October the eurozone inflation rate dropped below 1 percent and has remained there ever since (Photo: artemuestra)

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