Interest in Inflation
11/04/2013 | | econ70, Economic forecasting, economist on radio, economist on TV, eisenberg and economics, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, European Central Bank, European Inflation, exports to europe, funniest economist, funny housing economist, Graphsandlaughs, graphsandlaughs and eisenberg, housing sales, MLS, mortgage banking, Multiple listing service, overvalued euro, politics and economics, Public speaking economist
With year-over-year inflation in Europe running at just 0.7%, and core inflation at a record low of 0.8%, the European Central Bank should seriously consider an interest rate cut at their meeting this Thursday. While it won’t improve weak bank lending, it would weaken the overvalued euro, boosting exports. It’s better to prevent deflation because as Japan has shown, once deflation becomes entrenched, getting rid of it is very hard.