With inflation in the eurozone stubbornly remaining on a downward trajectory, pressure is growing on the ECB to do “something” to prevent outright deflation. But, given the financial structure of eurozone countries, would the preferred "something" – quantitative easing – actually do the trick?
Daniel Gros is Director of CEPS. This commentary was previously published by Project Syndicate, 7 October 2014, and syndicated to newspapers and journals worldwide (https://www.project-syndicate.org/commentary/ecb-quantitative-easing-against-eurozone-deflation-by-daniel-gros-2014-10) and is republished here with the kind permission of Project Syndicate.
