Consumers Do Not Start Delaying Purchases If Inflation Crosses Zero: #65,786

September 30, 2014

I guess this is one of those unsupported assertions that reporters think they just have to repeat to show someone they know economics. In fact they show the opposite. When inflation is near zero, many prices are already falling. Crossing zero, just means more prices are falling. So what?

Again, inflation is too low in the euro zone now. If it crosses zero, then it will be too low by a larger amount: end of story.

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