Remarks by ECB vice president, Luis de Guindos
- Important to avoid wage-price spiral
I made some points back at the start of October here as to why we are not heading towards a situation where wage-price spirals are going to take place, but that doesn't mean that central banks are excused from not doing anything at all in response.
The more dangerous risks associated with stagflation may not be a big threat now but persistently high inflation in itself is a problem that can't be ignored.
Euro area inflation expectations have jumped back up above 2% today, the first time since the end of October. Go figure.
