Several Economists Warn of Deflationary Pressures in the Euro

This is a subject many times explored in this blog. In many previous blog posts I have warned for a real possibility of deflation in the euro zone. The best response to  this crisis is being given by the US. Through the use of Quantitative Easing (QE), the US were able to close the gap generated by the housing market collapse. On the other hand, the Euro countries clung to the German ideology. The result is that only the Germans are benefiting from this state of affairs, but I think that even this can backfire if deflation materializes.

Again we see Europe on the verge of a crisis, without any visible leadership. The future seems dreadful in this  bitter old Continent.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s