ECB's Bini Smaghi: don't use the d-word
The term deflation is often misused as a catch-all phrase to describe every kind of negative development, said Lorenzo Bini Smaghi, a member of the European Central Bank's executive board.
Bini Smaghi said that this over-usage was dangerous as it could lead to the wrong policy advice, similar to a situation where an incorrect diagnosis could lead to the prescription of an overly aggressive medical treatment.
He said that deflation risks should be considered objectively and not emotionally as
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