- Deflation risk low but can never exclude adverse shock
- Economy even weaker now but likely to muddle through
- Can’t ignore that loss of economic momentum is worrisome
- On QE, says staff have been tasked with looking at alternatives but it’s too early to talk about that
“If low inflation in the Eurozone deteriorated into deflation, otherwise normal
differences of opinion on the Governing Council of the European Central Bank
would probably dissipate completely in the face of the need to address the
situation by any means”
So when the poop hits the fan that’s when they’ll all agree to do something. Same old Europe. And as for” muddling through”, these jokers are supposed to be fixing this mess. Same old Europe
Peter Praet is the ECB’s chief economist (muddling through) and was speaking to MNI
Peter Praet: Make like a statue and everything will fix itself
