RESEARCH - New research from the Centre for Economic Policy Research. The authors of the latest MECB Update argue that the ECB should only cut interest rates when falling growth prospects will be accompanied by an unambiguous decline in inflation forecasts. As there has been no conclusive evidence of a fall in inflation forecasts in the Eurozone at this time, the ECB has acted wisely and in accordance with its mandate of price stability. Authors: Alberto Alesina, Olivier Blanchard, Jordi Gali