Low oil price stimulates major economic areas The fall in the oil price is broadly reflected across the current situation in the global economy and the outlook for the future. Share Email Twitter Facebook Linkedin Google+
Is the euro area at risk of Japanese-style deflation? Euro area inflation has long been below the European Central Bank’s objective for price stability and has continued to slow in recent months. This has given rise to heightened concerns that the euro area could soon be facing a prolonged period of deflation, as recently in Japan. Share Email Twitter Facebook Linkedin Google+
The financial crisis changed the instruments but not the objectives of monetary policy Central banks have acted forcefully to provide monetary accommodation. With little room for manoeuvre for standard interest rate policy, unconventional measures have been adopted. Share Email Twitter Facebook Linkedin Google+
Russian economy and imports to contract substantially in 2015 The Russian economy has begun to contract due to the fall in the price of oil. GDP will contract by over 4% in 2015. The uncertainty will cause a decline in investment, and consumption will be cut particularly by rapid inflation. Imports will be reduced by the contracting economy, a weak rouble and declining export income. Share Email Twitter Facebook Linkedin Google+
Monetary policy supports euro area recovery from the crisis The decision by the ECB Governing Council to ease monetary policy through an expanded asset purchase programme will boost demand and accelerate inflation via a number of different channels. Share Email Twitter Facebook Linkedin Google+
Forecast risks There is increased uncertainty surrounding the growth and inflation forecasts, yet this time upside risks are also present. Share Email Twitter Facebook Linkedin Google+
Editorial: Commitment to accommodative monetary policy benefits economic outlook As a result of the prolonged period of exceptionally weak price developments, the ECB’s price stability objective began to lose its role as a solid anchor to price formation in the euro area. Share Email Twitter Facebook Linkedin Google+