Monetary policy in the euro zone has been extremely expansive for a long time. But true to the motto “The more you have, the less you see,” quite a few representatives of the European Central Bank’s governing council are pushing for more monetary relief.
In order to prepare the ground for it, they paint a bleak economic picture and refer to persistent deflationary threats.
This pessimism is exaggerated. The euro-zone economy has been growing for the last two-and-a-half years, albeit rather weakly. The current low inflation rates are due largely to the sharp fall in oil prices.