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Economy

Why the ECB and other central banks are being so cautious

Too much of a good thing could result in deflation

| Japan
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European Central Bank President Mario Draghi arrives to the news conference following the Governing Council meeting in Tallinn, Estonia, on June 8.   © Reuters

The recent ECB meeting was very dovish despite great growth. Why are the ECB and other central banks, currently so cautious? They say you can have too much of a good thing -- is that true with the current degree of accommodation?

There are a number of reasons for central banks to walk as if they were on eggshells.

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