First, Do No Harm: ECB Monetary Policy and the Risk of Deflation

Monetary policy makers of several leading economies have adopted aggressive measures to protect against the risk of deflation or even too-low inflation (disinflation). The ECB, however, has done the least.

By refusing to acknowledge the risks of disinflation, the ECB is guaranteeing that the recession in Europe will be longer and much worse.

Please review our recent thoughts regarding ECB policy: First, Do No Harm

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