Sunday 22 October 2017

ECB must help kick-start growth: OECD

Donal O'Donovan

Donal O'Donovan

The European Central Bank (ECB) should be doing more to help kick-start economic growth in the eurozone, the OECD has warned.

It said the ECB needed to consider radical moves if Europe is to avoid a Japan-style deflationary spiral. Japan slipped into a steep decline after its property bubble in the 1990s that led to a so-called "lost decade". Inflation in the eurozone fell to the lowest in four years in October.

OECD chief economist, Pier Carlo Padoan, said the ECB should use so-called "non-conventional measures" to tackle the issue. That is a reference to so-called quantitative easing – where the Central Bank basically prints more money to kick-start economic demand.

Irish Independent

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