Economists are currently divided over the question of what represents a more immediate threat to the global economy - deflation or excessive infl ation. Using stochastic simulations, this article extrapolates the likely inflation rates in individual European countries and the euro area as a...

First, we need to recall the initial objectives set for the euro and how these have changed over time, notably due to the weaknesses that came to the fore throughout the recent crisis. This also calls into question the policy choices made during the crisis and the priorities going forward.