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  • Euro Area Inflation: Why Low For So Long?

    From blogs.imf.org

    The euro area economy is in its fifth year of recovery, unemployment is close to its pre-crisis level and the output gaps of most countries have closed. Yet, core inflation continues to be low, notwithstanding temporarily high headline inflation due to higher energy prices. It may look as if the traditional Phillips curve relationship between core inflation and unemployment has broken down over the past five years. During 2012 to 2014, the euro area experienced a “missing disinflation” episode, where inflation stayed at relatively high levels despite high and increasing unemployment. From 2014 to 2017, there was ... (full story)

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  • Comment #1
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  • Aug 28, 2018 4:11pm Aug 28, 2018 4:11pm
  •  dean1star
  • Joined Apr 2011 | Status: Member | 125 Comments
inflation or deflation its a distraction of a man made tool thats for sure
 
 
  • Comment #2
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  • Aug 28, 2018 5:46pm Aug 28, 2018 5:46pm
  •  golfking
  • | Joined Aug 2006 | Status: Member | 391 Comments
.. low or high inflation and weakening a currency have never helped to control the economy of a country, ... Compare with Japan, US and now EU. It's just a means to distract the world from the manipulative activities of the so called "central banks" under the leadership of the FED, especially the "buying bonds" programs that enable higher liquidity to financial institutions and help them to increase their speculative and risky investments with the only purpose to produce higher bonuses for themselves instead of investing in infrastructure, production and creating new jobs. Higher inflation means weakening of a currency by printing more money without adequate reserves and is not improving productivity and GDP of a country.
 
 
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  • Aug 28, 2018 6:35pm Aug 28, 2018 6:35pm
  •  Superflex
  • | Joined Nov 2017 | Status: Member | 49 Comments
time to short it? hmmm very tempting
 
 
  • Comment #4
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  • Aug 28, 2018 8:51pm Aug 28, 2018 8:51pm
  •  lasty
  • Joined Aug 2008 | Status: Member | 1423 Comments
We can believe the stats or just watch whats happening in Europe.

There has been mass immigration through asylum seekers and now those countries who want it are considering border checks .
Unemployment improved ? Ask Italy .. they will tell you a different story

Im not believing anything that is coming out of the EU right now .. Its trying to paint a rosy picture because of its fear from Brexit
 
 
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  • Posted: Aug 28, 2018 3:56pm
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     Newsstand
    Category: Fundamental Analysis
    Comments: 4  /  Views: 1,603
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