The threat of a deflationary spiral in Belgium and the euro area has been repressed by policymakers' deliberate pre-emptive decision to implement expansionary policy, argues an article by the National Bank of Belgium. It says that this assured policymaking is the key factor in the handling of the current crisis that will prevent the Belgian and euro area economies from degenerating in the manner seen during the Great Depression.

Assuming a definition of price stability that dictates inflation