Maintaining Credibility is Currently the Top Priority
Auftraggeber: Europäisches Parlament
Studie von: Österreichisches Institut für Wirtschaftsforschung – Deutsches Institut für Wirtschaftsforschung – Hertie School gGmbH – Queen Mary, University of London (QMUL)
Online seit: 12.01.2023 0:00
The dispersion of inflation rates within the euro area tends to increase in times of very strong energy price increases. A small part of this divergence is due to fiscal policy measures implemented by member countries and aimed at dampening the energy price increase. The monetary policy response of an inflation-targeting central bank to adverse supply shocks depends on the nature of the shock (demand or supply driven, temporary or permanent) and on the credibility of the central bank's commitment to the inflation target.
JEL-Codes:E31, E, E58, F
Keywords:Inflation differentials, Monetary Policy, Energy prices
Forschungsbereich:Makroökonomie und europäische Wirtschaftspolitik
Sprache:Englisch