El Pais:
Draghi: una oferta que no debemos rechazar, Article by Luis Garicano
30 August 2014
Article by Luis Garicano
The Spanish and European economic course opens with the bad news of growth in real GDP and prices in the euro area in the second quarter and the response in an important (and excellent) speech on August 22 at Jackson Hole by the President of the European Central Bank, Mario Draghi. Recent news show that Germany, Italy and France and the eurozone economy as a whole, has stagnated, hindering the Spanish recovery (as shown by the recent national indicators of industrial activity). The prices in the euro area are also stagnant, while in Spain they have fallen. Interest rates show that investors do not believe the ECB is able to keep prices at their target of 2 percent growth. Unfortunately, as shown even by the Japanese experience, once the economy settles into deflation and expectations of economic agents are ''anchored'' in the fall of prices, it is difficult to get out.
This article was published by El Pais on August 30, 2014
Link to translated article here
Link to original article here
Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage