ECB Trichet:Anchoring Inflation Expectations Avoided Deflation
PARIS -(Dow Jones)- The euro zone has avoided a protracted period of negative
prices throughout the economic slump because the European Central Bank has
successfully anchored inflation expectations of companies and consumers, ECB
President Jean-Claude Trichet said Thursday.
"During the crisis period, our determination to anchor firmly inflation
expectations has helped us enormously, because we haven't had deflation,"
Trichet said at a conference held in Paris to celebrate the 10 years of the
euro.
Trichet also said that the growth and stability pact, which calls on European
Union members to keep their budget deficits below 3% and their debt below 60% of
their gross domestic product, is still "extremely important."
The ECB president's remarks come at a time when most countries in the union,
as well as in the euro zone, are infringing those criteria due to higher
spending to soften the economic slump.
-By Gabriele Parussini, Dow Jones Newswires; +33 1 4017 1766;
gabriele.parussini@dowjones.com
(END) Dow Jones Newswires
11-19-091403ET
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