Central banks’ obsession with deflation is misplaced

The ECB is actually concerned that prices are increasing more slowly than it would like, but its ability to raise the rate of inflation is dubious, says

By Daniel Gros

Central banks aim for price stability, and prices today are stable across much of the developed world. Yet central bankers are not satisfied. Some policymakers, most notably at the European Central Bank, are preparing further stimulus measures to convince financial markets of their resolve to fight deflation.