IMFS -Volker Wieland and Maik Wolters in new IMFS paper: No need for additional measures by ECB

In a new paper for the Institute for Monetary and Financial Stability (IMFS) Volker Wieland and Maik Wolters come to the conclusion that the risk of self-reinforcing deflation in the Euro zone remains very small.

Based on their analysis with the help of the Phillips curve, Wieland sees no need for additional monetary stimulus by the European Central Bank: “The ECB best awaits the impact of the long-term refinancing operations decided in June that have the potential to induce substantial monetary accommodation once implemented for the first time in September”.

IMFS Working Paper No. 81

Is there a threat of self-reinforcing deflation in the Euro area? A view through the lens of the Phillips curve

The IMFS Working Paper is also available as:

Kiel Policy Brief No. 79