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 […]
Japan’s Abenomics and the Money Multiplier
In recent months, Japan – the world´s third largest economy – has returned to center stage. On April 4, Japan embarked on a daring economic experiment. After two decades of stagnant growth and deflation, Prime Minister Shinzo Abe presented a “three arrow” program: Monetary stimulus to end deflation – the Bank of Japan launched the largest […]