Appreciation pressures followed in July, aided by increased interest of foreign investors who wished to invest in dinar government securities, and these pressures lasted into the following months (until November 2016).
And as I will argue below, the same conclusion holds as regards the other possible triggers for deflation – asset price declines or financial sector fragility. Overall, therefore, I am confident that Europe will not experience a period of persistent deflation – and the associated problems that this could cause. I can also assure you that we are aware of the risk.