(CNN) -- Mario Draghi is stepping on the gas, cutting interest rates to record lows, trying to funnel money into the real economy, and introducing a charge on banks that hold excess reserves with the European Central Bank. He is right to worry. Eurozone inflation is running at less than 1% a year, with several countries already experiencing falling prices. Deflation, and even very low inflation, can be a huge drag on economic activity. There's no encouragement to spend today to avoid higher prices tomorrow -- indeed, falling prices make putting off purchases attractive. Flat or falling prices also make it harder for businesses and consumers to pay off the debts left over from the financial crisis, increasing their reluctance to invest and spend.
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The ECB cut interest rates to a new record low in a bid to boost the economy
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But economist David Woodruff says the approach will not work for the eurozone
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What is needed are policies addressed to borrowers and spenders, he writes
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