Concerns are growing that the eurozone economy is hurtling towards a deflationary spiral, a lost decade even, not too dissimilar to that which has plagued Japan -- although realistically, Japan is coming into its third lost decade.
Current metrics in the Eurozone are not good. Inflation in Europe is barely positive at 0.4 per cent annually. Growth isn't much better at 0.8 per cent year-on-year. Yet as high as this anxiety might be, the likelihood of Europe becoming the new Japan is low. Japan's problems are unique, with little to no chance of resolution (Why Japan will never recover, November 14). Importantly, Japan's problems are not replicated in Europe.