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(CEP News) - The Greek economy will face some difficulties over the coming years with possible negative growth rates and inflation potentially coming down sharply, according to a report from the Bank of Greece published on Wednesday.
"It is estimated that economic activity will stagnate this year," according to the central bank's governor, Georgios Provopoulos, when delivering the report. He furthermore said that fiscal stimulus was having a smaller effect on euro zone economies than that of the United States, and recommended that the Greek government resolve its fiscal deficit by 2012. Regarding monetary policy, Provopoulos said that the European Central Bank's rate cuts have yet to be fully passed on, as hampered liquidity flows continue to prevent rates from moving sufficiently lower. He also warned that emerging from the financial crisis would take some time. By Erik Kevin Franco,
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; edited by Nick Say,
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