IMF paper sees EU inflation expectations holding firm
Researchers examine ‘synchronised deflation’ across Europe
The risk of inflation expectations "unanchoring" in the European Union appears low, but central banks should remain vigilant to avoid a deflationary episode similar to those experienced by Japan, according to a working paper published by the IMF.
In Are non-euro area EU countries importing low inflation from the euro area? Plamen Iossifov and Jiri Podpiera examine the "synchronised deflation" across Europe since the end of 2011.
They find the disinflationary trends outside of the eurozone but
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