 Risks of Falling of the Åurozone and Some EU Countries in a Deflationary SpiralIkonomiceski i Sotsialni Alternativi, 2016, issue 3, 49-60 Abstract: The central banks of many countries today are facing a serious problem with the dynamics of the price level. Before the global financial crisis of 2008 the countries faced the inflation problem, while after it the countries faced another serious phenomenon - deflation. The European Central Bank and the central banks of Hungary, Poland and the Czech Republic also faced deflation over the past year by seeking alternative solutions to deal with it, especially in circumstances of low interest rates at which price stability as an objective of the monetary policy was difficult to be achieved. Taking into account the negative effects of the deflation in Japan in the 90s of the last century and the beginning of this century, the monetary authorities should take timely action in order to prevent the entry into deflationary spiral, from which the countries could exit very difficult and slowly. The study aims to analyze whether the Eurozone, the Czech Republic, Poland and Hungary are facing risk of falling into a deflationary spiral, and can economies to deal with this economic problem. Keywords: deflation; monetary policy; central bank (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:nwe:iisabg:y:2016:i:3:p:49-60 Access Statistics for this article More articles in Ikonomiceski i Sotsialni Alternativi from University of National and World Economy, Sofia, Bulgaria Contact information at EDIRC. |
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