Paul Krugman notes some bizarre statements from former ECB board member Jurgen Stark. But the line of thought: deflation is fine as long as people don't talk about it -- is embedded in the Eurozone elite. Here's Dutch minister of finance and Eurogroup chief Jeroen Djesselboem last week, courtesy of the Wall Strret Journal --
“What I’m worried about is that if all of us keep talking about and warning about the risk of deflation, it will become a self-fulfilling prophesy,” Mr. Dijsselbloem said. “Because if you keep telling people and investors and companies that there will be a long-term low inflation or even deflation, that could influence their behavior.”
“What I’m worried about is that if all of us keep talking about and warning about the risk of deflation, it will become a self-fulfilling prophesy,” Mr. Dijsselbloem said. “Because if you keep telling people and investors and companies that there will be a long-term low inflation or even deflation, that could influence their behavior.”