The U.S. and the euro area face daunting economic challenges in a world of low inflation and interest rates and central banks alone don’t have the tools to cope. That’s the message delivered to the American Economic Association’s annual meeting on Sunday by former European Central Bank President Mario Draghi and ex-Federal Reserve Chair Janet Yellen. “I believe that for the euro area there is some risk of Japanification, but it is by no means a foregone conclusion” if it acts comprehensively to avoid a deflationary malaise, Draghi said via a video link to the conference in San Diego. “The euro area still has space to ... (full story)