Given that inflation in the eurozone has been falling since late 2011 and has been below 1% since October 2013, this seminar will assess the current risk of deflation for the eurozone. What are the drawbacks of low inflation? Could there be negative consequences for undermining the trust in the ECB's ability to keep inflation close to 2% in the medium term? Which monetary policy tools are at the disposal of the ECB to influence inflation, in particular in the core countries of the eurozone, and what would be the effectiveness and possible side effects of the deployment of these tools.
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