EZ inflation has been falling steadily since early 2013, turning negative in late 2014. This column surveys a host of recent research from Banca d’Italia that examined the drivers of this fall, its macroeconomic effects, and ECB responses. Aggregate demand and oil prices played key roles in the drop, which has consistently ‘surprised’ market-based expectations. Towards the end of 2014 the risk of the ECB de-anchoring inflation expectations from the definition of price stability became material.
Most Read
Vox eBooks
Vox Talks
Events
-
3 - 4 May 2019 / London / Queen Mary, University of London
-
15 - 17 May 2019 / Florence, Italy / Florence School of Banking and Finance, European University Institute
-
16 - 17 May 2019 / University of Minho, Guimarães, Portugal / School of Engineering, University of Minho
-
20 - 20 May 2019 / Frankfurt am Main / SUERF - The European Money and Finance Forum Deutsche Bundesbank
-
20 - 22 May 2019 / Florence, Italy / Florence School of Banking and Finance, European University Institute
