ECB Monthly Bulletin - April 2008

The latest edition of the European Central Bank's Monthly Bulletin argues that recent movements in bond markets that appear to indicate a pick up in euro-area inflation expectations, are misleading.

The central bank says that the movements reflect temporary liquidity distortions and that longer-term inflation expectations are in line with price stability.

"In the last couple of months, break-even inflation rates have experienced some pronounced fluctuations, which seem to be closely related to

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