Faculty News

In an op-ed, Profs. Cooley and Schoenholtz address the threat of deflation in the eurozone

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Excerpt from CNBC -- "The latest data show inflation in the euro area has slowed well below the European Central Bank's stated goal, and many of the economies risk a renewed contraction. Downward pressure on prices is likely to persist. It is not out of the question that the region could sink into a sustained deflation that would further cripple the economy. The ECB needs to take this threat seriously and demonstrate now that it has the policy tools (and is prepared to use them) in the event of a new deflationary shock."

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