In advanced economies “there is a growing risk of what I call 'low inflation', especially in the Eurozone”. This was declared by Christine Legarde, chief operating officer of the International Monetary Fund, during an event organized at the School of Advanced International Studies in Washington DC.
Titled “The Road to Sustainable Global Growth 'the Policy Agenda'”, Lagarde's speech explains that “a potential prolonged period of low inflation can weigh on demand and output and suppress growth and employment.”
According to Legarde, more monetary easing is needed in the euro area, including unconventional measures, "to lift the outlook and meet the European Central Bank's objective of price stability".
The IMF argues that the Central Bank of Japan should "persist with its policy of monetary easing".
