If this low inflation is a global phenomenon, we need to consider global factors to understand the potential causes. In the initial post-GFC period, the clear common driver was weak demand as households and firms restricted spending and consolidated their positions in the wake of severe financial stress.
*  *  *  Ladies and gentlemen The events of the past five years have called into question many assumptions that were the foundations of our monetary and financial system. But while it is necessary to draw the right conclusions from the current crisis, we should not discard the lessons we have learned from previous crises – for they remain equally valid.