The Eurozone’s Minsky Conundrum
Stubbornly low inflation has the European Central Bank worried. But its response – buying even more bonds and lowering its benchmark interest rate even further into negative territory – could backfire, exacerbating existing imbalances and generating serious financial instability.
https://prosyn.org/Ru5HHQy
BRUSSELS – Stubbornly low inflation has the European Central Bank worried. But its response – essentially just more quantitative easing – could backfire, exacerbating imbalances and generating serious financial instability.