Euro Area Inflation: Why Low For So Long?

2019-03-13T15:15:23-04:00August 28, 2018|

By Yasser Abdih, Li Lin, Anne-Charlotte Paret 

August 28, 2018

Sculpture of the euro outside the European Central Bank, Frankfurt, Germany: Convergence of core inflation towards the ECB’s medium-term objective is likely to be gradual (photo: Alex Domanski/REUTERS/Newscom)

The euro area economy is in its fifth year of recovery, unemployment is close to its pre-crisis level and the output gaps of most countries […]

Disinflation in EU Countries outside the Eurozone

2017-04-14T01:48:21-04:00February 2, 2015|

By Plamen Iossifov and Jiri Podpiera

Inflation has been falling sharply across Europe since 2012 (see Charts 1 and 2). Across Central and Eastern Europe (CEE), inflation expectations have also drifted down especially among countries who peg their currencies to the euro (Bulgaria, Croatia, as well as Lithuania, which adopted the euro on January 1, 2015), but also in those that target their inflation rate (the Czech Republic, Hungary, Poland, and Romania).

The recent drop in world oil prices has re-ignited the debate about good vs. bad disinflation. For the euro area, risks from low inflation […]

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