What Krugman said here applies to the EU too (infact he's basing it on IMF research using global data): http://krugman.blogs.nytimes.com/2010/08/12/the-price-

What Krugman said here applies to the EU too (infact he's basing it on IMF research using global data): http://krugman.blogs.nytimes.com/2010/08/12/the-price- http://krugman.blogs.nytimes.com/2010/08/12/the-price- stability-trap/ "in the modern world, rapid deflation doesn’t happen, and in fact slight positive inflation often persists in the face of an obviously depressed economy"