The five-year curse afflicting Europe

Not all deflation is bad. However, the kind spreading across Europe is deadly and will take years to address.

Deflation emerged as a distinct threat to Europe’s tentative economic recovery earlier this year and since then conditions have deteriorated further. Europe stands on the precipice of a triple-dip recession and at this point it appears unlikely that rates will rise in the euro zone for at least another five years.

But why is deflation such a threat? And should households and businesses really be worried?

It’s a fair question, and one that deserves to be fleshed out further. Surely declining prices are a good thing, right?


SMS Code Sent…

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Log in to access this content

Looks you are already a member. Please enter your password to proceed

Hi {{ user.FirstName }}

Verify your mobile number to unlock a FREE trial

Looks like you've already taken a free trial

Please sign up for full access

Updating information

Please wait ...

Related Articles