The Adam Smith Institute's Head of Policy, Ben Southwood, was featured in a City AM article on the European Central Bank's interest rates.
Read the article here.
"Ben Southwood, head of policy at the Adam Smith Institute, says that markets aren't buying recent 'open mouth operations', as statements from ECB staff have failed to move the euro against the dollar.
"That 0.5 per cent headline inflation figure masks that many Eurozone members are now suffering from deflation - and not the good kind, that stems from improvements in productivity, says Southwood. Instead, these states now see deflation without real GDP growth. That suggests that demand is too low, and that prices are falling to clear markets.
"ETX Capital's Ishaq Siddiqi says that investors have adopted a "wait-and-see approach" ahead of any potential action by the central bank. Market participants may see rate cuts - even into negative territory - as inadequate, and may want to see a "big bazooka" if deflationary concerns do materialise."