[p2p-research] Relative Price Levels in the Euro Area 1995-2009

[Patrick Anderson]

Ryan wrote:
> You can see the problem - over the last 15 years, costs on the
> periphery escalated relative to the big core economies -
> Germany and France.
> Now the area is at risk of deflation - in particular in Ireland,
> there was clear deflation in 2009.  (There's an interesting article
> on the not-too-great effects of Ireland's austerity program in
> this morning's NYT).

Sorry if this is a stupid question, but I don't understand the goal.

Do we want prices to be high, or do we want them low?

Thanks,
Patrick