While the crisis in Greece appears to have receded at least temporarily, the euro-zone still faces serious challenges in the form of weak growth and persistent deflation risks. As the Chart below shows, the recent weakness in oil prices and rise in the euro exchange rate haveopened up the possibility of a renewed bout of negative consumer price inflation in thecoming months, increasing the pressure on the European Central Bank to maintain or evenextend its policy stimulus.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services