The ECB’s differences of opinion are reminiscent of 2014, when government austerity after the regional debt crisis was weighing on prices. Then-President Mario Draghi was finely attuned to the risk and started a strategic push for massive bond purchases.
FRANKFURT: Deflation is back on the minds of European Central Bank (ECB) officials, presaging battles for President Christine Lagarde over whether the euro zone needs yet more monetary stimulus.
In sparking the biggest peacetime recession in Europe since the 1930s, the coronavirus pandemic has reawakened the image of a Great Depression-like slump in prices and wages that sucks the life out of the economy.
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