This week more indications emerged pointing to the possibility that the European Central Bank is to announce a government bond purchases programme sooner than expected. Negative inflation of -0.2% (deflation) in Eurozone during December (announced yesterday by Eurostat), brings this prospect much nearer. The latest information related to the government bond purchases by the ECB […]Negative inflation hits Eurozone, ECB to print and distribute one trillion euro earlier than expected
January 8, 2015 by 1 Comment
This week more indications emerged pointing to the possibility that the European Central Bank is to announce a government bond purchases programme sooner than expected. Negative inflation of -0.2% (deflation) in Eurozone during December (announced yesterday by Eurostat), brings this prospect much nearer. The latest information related to the government bond purchases by the ECB […]Draghi’s top new year resolution: Quantitative Easing
December 26, 2014 by
The year 2014 is coming to an end and the major concern of the European Central Bank (ECB) and its president Mario Draghi was and still is the inflation rate that is way below the target of close but below 2%. The next monetary policy meeting of the ECB’s Governing Council will take place on […]EU growth in 2015 to be again sluggish; Can the Juncker Commission fight this out?
November 7, 2014 by Leave a Comment
It was last Tuesday when the European Commission (EC) met in Brussels to talk about the 2014 autumn economic forecast. Among others, the discussion was mainly about the sluggish growth and inflation, the impact of geopolitical crises in the EU economy as well as the significant economic performance of Ireland. Wrong growth forecasts The EC stated […]ECB to play down IMF’s alarms for deflation danger in the EU
October 31, 2014 by 1 Comment
It was last Tuesday when Peter Praet, Member of the Executive Board and chief economist of the European Central Bank (ECB), reported to two Belgian newspapers that there is limited risk of price deflation in the euro area. The Economic Sentiment Indicator (ESI) in the euro area and in the EU gained momentum after four […]Five-year low inflation for Eurozone and now Mario has to finally wake up the Germans
October 2, 2014 by
The European Central Bank’s (ECB) governing council is gathering today in Naples to discuss the monetary policy just two days after the publication of the flash estimate of the annual inflation of the Euro area by Eurostat, the statistical office of the European Union. The inflation is expected to be 0.3% in September, a 0.1% […]Europe again the black sheep at the G20 Finance Ministers and Central Bank Governors
September 25, 2014 by
Last weekend the much anticipated G20 Finance Ministers’ and Central Bank Governors’ meeting happened in Cairns, Australia. It was very supportive and positive as far as the implementation of the necessary measures to boost the global economic growth in terms of GDP by an additional 1.8 per cent till 2018. This will be done through investments […]Did Draghi ask the Germans to accept a drastic change of austerity policies?
September 2, 2014 by 1 Comment
With the unemployment rate always at double digit levels (11.5%), inflation falling again nearer to naught (0.3% in August), the Economic Sentiment Indicator (ESI) dropping and the Business Climate Indicator idling flat, the Eurozone economy is steadily heading to a dormant state at best or to a new long recession at worst. Speaking of overall […]European Council: Choosing new leaders for the EU betrays efforts for a wider arrangement
September 1, 2014 by Leave a Comment
The special meeting of the European Council held last Saturday 30 August, despite or probably because of the alarming news about the new fall of inflation to the crisis level of 0.3% last month, was almost totally devoted to the Ukrainian crisis. Unfortunately, the new inflation coming close to zero means that the millions of […]Eurozone: GDP development heads to naught; the expensive euro serves only Germany
August 17, 2014 by Leave a Comment
A new Eurostat wave of data statistically confirmed that Eurozone is utterly moored in economic stagnation, with disturbing signs that this might even turn to recession. Most significantly, last week the EU statistical service issued an estimate that the euro area GDP idled with a zero growth rate during the second quarter. The same source […]Industrial price dive may lead to point of no return
August 6, 2014 by Leave a Comment
Last Monday, Eurostat, the EU statistical service issued data on June industrial price developments (0.1% month to month), actually showing stagnation in relation to May. It is more alarming to observe though that all along the first five months of 2014, from January to May on a month to month basis, industrial prices had been […]Eurozone: Inflation plunge to 0.4% in July may trigger cataclysmic developments
August 4, 2014 by Leave a Comment
With inflation in Eurozone falling last month to crisis level nadir and a new business investments retreat, it is easily understandable why unemployment is still exploding at double-digit highs. As a matter of fact, at the end of last month Eurostat, the EU statistical service published its estimates for the above mentioned crucial variables, which […]Europe can easily exit from stagnation if Germany changes perspective
July 22, 2014 by Leave a Comment
If things continue on their present course, there is no indication that in the foreseeable future the Eurozone inflation rate could start performing its desirable role again and could signify, or probably even trigger a new period of economic expansion. If the European Central Bank continues resisting the pressures for substantial monetary quantitative easing, the […]Will ECB win against low inflation by not following Quantitave Easing?
June 27, 2014 by Leave a Comment
On the 5th of June, the European Central Bank (ECB) decided not to fully deploy all the tools of Quantitative Easing (QE) programme, which showed that the ECB is not yet ready to risk everything in order to deal with low growth and inflation rates. Christine Lagarde, Managing Director of the International Monetary Fund (IMF) […]Is deflation a real danger for Eurozone?
June 17, 2014 by Leave a Comment
There are rare times in the economic chronicle, and here they are now, when the merry going economies like Austria and Luxembourg have decent inflation rates around 1.5%, while the unlucky and miserable ones like Greece, Bulgaria and Portugal are being haunted by negative inflation records of up to -2.1%. Let’s get the full and […]Quantitative easing: how Mario can tackle low inflation in Eurozone
May 30, 2014 by Leave a Comment
One of the major issues that the European Central Bank (ECB) struggles to solve is low inflation. It seems that it is not even close to the target that has been set; a rate of below but close to 2% over the medium term. April’s inflation data indicated a 0.7% inflation rate, a percentage not far away […]Eurozone: Negative statistics bring deflation and recession closer
May 1, 2014 by Leave a Comment
An avalanche of disappointing statistics on Eurozone was released during the last two days, supporting the view that the single money zone is stuck in economic stagnation. The Business Climate Indicator (BCI), Economic Sentiment Indicator (ESI), the annual inflation and a euro area bank lending survey, all those statistics for April show that the euro […]Half of Eurozone in deflation expecting salvation from monetary measures
April 17, 2014 by Leave a Comment
Five Eurozone countries posted negative inflation rate in March (Greece (-1.5%), Cyprus (-0.9%), Portugal (-0.4%), Spain and Slovakia (both -0.2%), while the rate of change of consumer prices ranged between 0.1% and 0.3% in another four euro area members states during the same month. In almost all the rest euro area countries, March inflation appeared […]The ECB ‘accidentally’ followed IMF‘s policy advice for growth and job creation by printing more money
April 7, 2014 by Leave a Comment
Christine Lagarde, Managing Director of the International Monetary Fund, speaking in Washington DC last Wednesday 2 April stressed that the world economy, in the aftermath of the Great Recession of 2008-2012, faces a long period of slow and sub-par growth, “well below the solid, sustainable growth that is needed to create enough jobs and improve […]Eurozone closer to a deflation – stagnation trap
March 31, 2014 by Leave a Comment
In a six line and few words Press release, Eurostat, the EU statistical service, announced its flash estimate for March Eurozone inflation at 0.5% further down from 0.7% in February, setting wide open the deflation (negative inflation rates) trap for the 18 countries euro area. This fast disinflation (falling inflation rates) course started last October, […]Why Eurozone needs a bit more inflation
March 18, 2014 by Leave a Comment
It has become a bad joke to hear the European Central Bank’s Governing Council repeating monotonously that the inflation target for the euro area is below, but close to 2%. Most of the time, the same or the next day the EU’s statistical service (Eurostat) releases data confirming that Eurozone’s inflation is below 1% and […]ECB readies itself for extraordinary monetary measures defying Germany
March 14, 2014 by Leave a Comment
In direct antithesis with the German Federal Minister of Finance Wolfgang Schauble, Mario Draghi, the President of the European Central Bank, raised yesterday the issue of the deflation risk (negative inflation, most prices fall) which could possibly engulf Eurozone. Draghi, after receiving the ‘Schumpeter Preis’ in a ceremony for the Schumpeter Award, at the Oesterreichische […]Eurozone: Subdued inflation can lead to more recession
February 25, 2014 by Leave a Comment
Inflation in Eurozone remained subdued during last January at 0.8%, stable as in December 2013 but way below the January 2013 quote at 2%. According to Eurostat, compared with December 2013, annual inflation fell in seventeen member states, remained stable in seven and rose only in four. In January 2014, negative annual rates were observed […]The mother of all fights about inflation, growth and banks
January 28, 2014 by Leave a Comment
Reading two accounts by two different people, about what happened in the Eurogroup meeting yesterday in Brussels, gives a clear indication of what will be decided in the ECOFIN Council today. Ollie Rehn, Vice-President of the European Commission and member of the Commission responsible for Economic and Monetary Affairs and the Euro, and Jeroen Dijsselbloem, […]War of words in Davos over Eurozone’s inflation/deflation
January 27, 2014 by Leave a Comment
During the last two days, Friday and Saturday, of this year’s Davos gathering of the rich and powerful, an intense debate about Eurozone’s inflation or rather deflation, divided once again the Old Continent between Germans and…anti-Germans. Ollie Rehn, the Finn European Commission Vice-President and Commissioner responsible for finance and the euro, said that the currently […]IMF launches a new offensive against Germany
January 22, 2014 by Leave a Comment
In the latest issue of its World Economic Outlook (WEO), which was published yesterday, the IMF raises the tone of criticism against Europe. It’s again the risk of deflation and the projection that “economic slack will remain high”, the two axes which constitute the cutting edge of criticism of North America against Eurozone. The latest […]Eurostat confirms a dangerously fast falling inflation in Eurozone
January 17, 2014 by Leave a Comment
Yesterday Eurostat confirmed that the euro area inflation rate for December was down to 0.8% from 0.9% in November, dangerously approaching the negative part of the graph. The announcement coincided with IMF Managing Director Christine Lagarde’s warning that weak growth in Eurozone is now also threatened by deflation (continuously falling prices leading to real economy […]IMF’s Lagarde indirectly cautioned Eurozone on deflation
January 16, 2014 by Leave a Comment
Weak growth is threatened by deflation in the developed world, while emerging markets have to overcome the financial turbulences that lie ahead, due to forthcoming restrictive monetary policy by the US central bank, the Fed. This is what IMF Managing Director Christine Lagarde said yesterday, speaking at the National Press Club in the U.S. capital. […]Eurozone has practically entered a deflation trap
January 8, 2014 by Leave a Comment
With consumer price developments in Eurozone remaining below the one percentage unit for many months now, disinflation (falling inflation) is just some decimal points away from deflation (negative inflation). Yesterday, Eurostat, the EU statistical service, released its estimate for the December headline inflation at 0.8% , down one decimal point from 0.9% in November. This […]Eurozone hasn’t escaped the deflation danger
December 17, 2013 by Leave a Comment
Eurostat, the EU statistical service, confirmed its own inflation rate estimate for November at 0.9% in the Eurozone; that is two decimal points higher than in October. However, this doesn’t mean that inflation took the upward path neither does it indicate that growth has already started pressing consumer prices to higher levels. It must be […]Mixed news about the Eurozone economy
December 2, 2013 by Leave a Comment
According to a flash estimate released by Eurostat, the EU statistical service, Eurozone annual inflation was 0.9% in November, slightly higher than 0.7% in October. Excluding the items under the categories of energy, food, alcohol & tobacco, the November inflation rate is thought to have been 1% after 0.8% in October. Price developments in the […]ECB offers cheaper money despite reactions from Germany
November 8, 2013 by Leave a Comment
Yesterday, the European Central Bank, in a swift move, reduced its basic interest rate to 0.25% from 0.5%. The decision was taken by the Governing Council of the bank, in its regular meeting which takes place on the first Thursday of every month. This decision has reportedly taken the capital markets by surprise, but this […]Renewed pressures on Berlin to adopt growth policies
November 6, 2013 by Leave a Comment
Yesterday, the European Commission in Brussels announced that euro area growth prospects are sluggish, and downgraded the projected rate of GDP increase for 2014, from 1.2% to 1%. Also yesterday President Manuel Barroso, while speaking in Saint Paul’s Church in Frankfurt, where the first democratically elected Parliament of Germany was convened, called on this country […]Commission Vice-President Rehn exaggerates Eurozone’s growth prospects
November 6, 2013 by Leave a Comment
Yesterday the European Commission published its autumn 2013 economic forecast for the EU and the Eurozone. Apart from downgrading the growth prospects in relation to last spring projections, Ollie Rehn, Commission vice-President, while presenting the package, used slightly different estimates than the ones contained in the full report prepared by the Directorate-General for Economic and […]
