IMF staffer urges global effort to stem deflation

An International Monetary Fund (IMF) economist has called on central bankers to begin multilateral talks to stave off worldwide deflation.

Olivier Jeanne, an economist at the IMF who previously taught economics at the University of California at Berkeley, said in a piece written for VoxEU.org, an economics blog: "It is not clear how central banks would respond if deflationary consequences were to become stronger. This uncertainty is damaging confidence and carries risks to the economic order.