{"id":4227,"date":"2015-01-07T21:04:38","date_gmt":"2015-01-08T02:04:38","guid":{"rendered":"http:\/\/olduvai.ca\/?p=4227"},"modified":"2015-01-07T21:04:38","modified_gmt":"2015-01-08T02:04:38","slug":"the-deflation-calamity-howlers-are-dead-wrong-in-europe-and-everywhere-else","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=4227","title":{"rendered":"The Deflation Calamity Howlers Are Dead Wrong\u2014-In Europe And Everywhere Else"},"content":{"rendered":"<h4 class=\"entry-title\"><a href=\"http:\/\/davidstockmanscontracorner.com\/the-deflation-calamity-howlers-are-dead-wrong-in-europe-and-everywhere-else\/\" target=\"_blank\">The Deflation Calamity Howlers Are Dead Wrong\u2014-In Europe And Everywhere Else<\/a><\/h4>\n<p>The calamity howlers of deflation are out in force this morning\u00a0owing to an absolute economic\u00a0non sequitur.\u00a0Namely, that year-on-year\u00a0consumer prices in the EU came in at negative 0.2% in December, implying that ECB printing presses need to go into immediate overdrive.<\/p>\n<p>Well, of\u00a0course the CPI has momentarily\u00a0weakened. Crude oil has experienced a monumental plunge of more than 50% since mid-2014.\u00a0That has temporarily dragged down the euro zone\u2019s\u00a0reported CPI and the math isn\u2019t all that complex. During the last 12 months,\u00a0 euro zone energy prices have fallen by 6.3%, and everything else is still 0.6% higher than a year ago.<\/p>\n<p>So what\u2019s the emergency? This is the very\u00a0same CPI blip that occurred when oil collapsed in\u00a0the second half of 2008. As is evident below, that episode did not generate some cascading plunge into economic darkness. In fact, the Eurozone CPI was back running\u00a0above 2.5% in no time.<\/p>\n<p><img decoding=\"async\" class=\"chart\" title=\"quick view chart\" src=\"http:\/\/sdw.ecb.europa.eu\/servlet\/quickviewChart?SERIES_KEY=122.ICP.M.U2.N.000000.4.ANR&amp;start=01%2F01%2F1996&amp;end=31%2F12%2F2014&amp;trans=N&amp;submitOptions.x=77&amp;submitOptions.y=9\" alt=\"quick view chart\" border=\"2\" \/><\/p>\n<p>The truth of the matter is that the EU-19 is in clover because it\u2019s consumers get a big break; and, on the\u00a0other side of the economic\u00a0equation, it\u00a0produces almost no oil. Europe\u2019s production is mainly in the UK and Norway and they have their own currencies.<em><strong>Accordingly, the ECB should be putting its printing presses on an extended sabbatical and\u00a0declaring victory on the achievement of its \u201cprice stability\u201d objective.<\/strong><\/em><\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Deflation Calamity Howlers Are Dead Wrong\u2014-In Europe And Everywhere Else The calamity howlers of deflation are out in force this morning\u00a0owing to an absolute economic\u00a0non sequitur.\u00a0Namely, that year-on-year\u00a0consumer prices in the EU came in at negative 0.2% in December, implying that ECB printing presses need to go into immediate overdrive. Well, of\u00a0course the CPI [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[202,233,279,281,2151],"class_list":["post-4227","post","type-post","status-publish","format-standard","hentry","category-economics","tag-deflation","tag-ecb","tag-eu","tag-europe","tag-monetary-easing"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4227"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4227\/revisions"}],"predecessor-version":[{"id":4228,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4227\/revisions\/4228"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}