Just imagine the significant synergies that could be achieved for example in the field of IT procurement, where the benefits would not only apply to pooling purchasing power but, at the same time, could bring the significant advantage of implementing systems/applications which are fully compatible across central banks which, in turn, would substantially enhance and facilitate cooperation.
But if prices fall or stagnate for the wrong reasons, as is the case today, then they are typically the harbinger of lower future growth and employment. An economy paralysed by the pandemic has pushed underlying inflation – the rate of price change of less volatile goods and services – to a new historical low of 0.2% in October (see slide 2).