The relationship between inflation and inflation uncertainty is investigated in six European Union countries for the … of inflation uncertainty and then Granger methods are employed to test for causality between average inflation and … inflation uncertainty. In all the European countries except Germany, inflation significantly raises inflation uncertainty as …

Inflation in advanced economies is low by historical standards but there is no threat of deflation. Slower economic … growth is caused by supply-side constraints rather than low inflation. Below-the-target inflation does not damage the … reputation of central banks. Thus, central banks should not try to bring inflation back to the targeted level of 2%. Rather, they …