IMF chief economist Blanchard says the eurozone is the only region at risk of deflation, in comments in Johannesburg.
Less than an hour ago, the ECB’s Costa was saying there is no risk of deflation in Europe in a refrain that has been frequently repeated by the ECB’s governing council.
There’s a low-level feud ongoing between the IMF and ECB, largely because the IMF has long wanted the ECB to do more. It will be interesting to hear the IMF’s reaction after the June 5 ECB meeting.
