Eichengreen says central banks lack will not ability to tackle deflation
Central banks should consider more aggressive response, economist says
Central banks are able to tackle pernicious deflation, it is just a question of whether they are willing, Barry Eichengreen, a professor of economics at Berkeley University, argued in a paper published today (October 16) by the Bank of Korea.
Surveying the contentious debate around the extent to which deflation is a problem, and how policy-makers should respond, Eichengreen said, on balance, Japan's experience pointed to the perils of falling prices.
Some economists, including a group from the
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