Should we be afraid of “low-flation”?
The term "deflation" seems to be on everyone's lips in Europe these days, not just on those of economists. The buzz around the term is not surprising, as Eurozone inflation has been falling for the past three years. France is no exception: French consumer prices rose by only 0.5% year-on-year in October 2014. This slower pace of inflation coincides, moreover, with sluggish growth. As we know, deflation, when it occurs, has considerable consequences for consumers.
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