Inflation poses no problems in the Eurozone

28 Feb

Ben Bernanke clarified his position as a response to the insistence of some Congressman (mostly Republicans): a strategy for normalizing monetary policy (printing press is not exactly the usual procedure) is not in the eyes of officials. Furthermore, when it will be decide to raise interest rates or extract liquidity, the announcement will be made in advance. ECB President Mario Draghi did not want to create a dissonance, and in a speech on Wednesday said that there is no rush to withdraw monetary stimulus. One of the arguments the low inflation rate which is gonna fall below target is supported by recent data: Eurozone consumer prices rose 2% in the last year, and without food and energy, alcohol and tobacco, their level is about  1.3% higher.

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