According to Eurostat, the annual inflation rate in the Euro area was only 0.7% in February 2014. A year earlier that same rate stood at 1.8%. This has prompted concerns about the Euro Area slipping into deflation. Deflation is defined as a general decrease of the price level. There have been several such episodes in…

Oh no, not again, more theory about what economists do!  Don’t worry;  today it’s about Charlie Chaplin and broken glass too.  The other day I read a letter to the editor in the FT titled, “Economics in just one sentence” (in the February 25, 2014 paper version).  It dealt with the question at hand -…

Last Friday, Argentina saw the largest devaluation of the peso in the last 12 years, since the default in 2002 ...