DEFLATION IS HERE TO STAY IN EU - Merkels dream to build a Europe - TopicsExpress



          

DEFLATION IS HERE TO STAY IN EU - Merkels dream to build a Europe with low wages has a God-sent menace: Deflation. If she pushes too hard this will backfire on Germanys economy.The price drop does not supply an important advantage to the Eurozone, but threatens to lead to a deflation spiral. The credit expansion today for EU is extremely low (only 2% when the previous decade was 5%), the EU economy fails to recover steadily, expectations for inflation are downwards and the POPULATION AGES steadily. That is why FR and Italy are doing the right thing by saying no to a low prices+low wages duet. This winter will be grim for Greece...
Posted on: Sun, 19 Oct 2014 16:41:44 +0000

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