A dose of inflation would help the eurozone medicine go down

In Europe the risks of excessively low inflation are often ignored. In the face of chronically weak demand, the eurozone now faces the prospect of deflation. This promises to depress economic growth further and make it yet harder to pay down debt. Indeed, the role of higher inflation in helping to address the eurozone crisis is poorly understood. If the single currency is to survive, it needs much higher inflation than at present, especially in Germany.

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