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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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The views expressed in this opinion piece are the author’s, not those of EUobserver

Author Bio

Lisbeth founded EUobserver in 2000 and is responsible to the Board for effective strategic leadership, planning and performance. After graduating from the Danish School of Media and Journalism, she worked as a journalist, analyst, and editor for Danish media.

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

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Author Bio

Lisbeth founded EUobserver in 2000 and is responsible to the Board for effective strategic leadership, planning and performance. After graduating from the Danish School of Media and Journalism, she worked as a journalist, analyst, and editor for Danish media.

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