Is Europe already experiencing deflation?

This article asks whether the threat of deflation is likely and suggests it may already be here and that, given the example of Japan, it may be that nothing can be done about it.

First published in the UK edition of the Financial Times, 14 May.

The probability of an unwelcome substantial fall in inflation, though minor, exceeds that of a pick-up in inflation from its already low level. - Federal Reserve, May 6 2003

Last week was a watershed in the history of monetary policy. Thirty years of

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