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Draghi’s Deflation Risk Complicates Recovery

From bloomberg.com

Mario Draghi is facing down a deflation threat with few options left to fight it. Consumer prices in the euro area are rising at the slowest pace in four years, well below the European Central Bank’s target of just under 2 percent. The ECB president has a choice of cutting rates that are already near zero, injecting liquidity that may not boost prices, or ignoring the ECB’s own definition of price stability, according to banks including JPMorgan Chase & Co. and BNP Paribas SA. A price slowdown could turn into a negative spiral that derails the recovery in the euro region. While the 17-nation economy exited six ... (full story)

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