Description

Inflation rates in most advanced economies remain stubbornly low. To many observers, this reflects persistent economic slack in the aftermath of the Global Financial Crisis (GFC), coupled with the evolution of oil prices since late 2014. Indeed, this combination has put deflation concerns at the forefront of policymakers’ concerns, particularly in the Eurozone where output has lagged compared to the recovery in the US, bringing prices even lower despite a significant depreciation against the dollar.