Comments from the ECB’s Weidmann:
- Risk of broad deflation in eurozone is ‘very low’
- Expects economy in eurozone to pick up and inflation rate to gradually increase
- In the case of long-term low inflation, any measures will have to fulfill many conditions
- German domestic growth fores picking up
I’m not sure if the ECB actually believes the risks are low or if they believe that by pretending inflation won’t fall that it won’t happen.
“Europe is not Japan” “Europe is not Japan” “Europe is not Japan” … they’ll keep repeating it until everyone believes it. The thing is, Japan never had 10% unemployment to go along with a terrible economy.
