Eurozone inflation affects fiscal policy, ECB paper finds

Authors say there is evidence of “turning point” for inflation’s impact on primary fiscal balances

European Central Bank

A working paper published by the European Central Bank tracks the relationship between eurozone inflation and member states’ fiscal balance. 

In Inflation and fiscal policy: is there a threshold effect in the fiscal reaction function?, Clémence Briodeau and Cristina Checherita-Westphal look at data on the eurozone from 1999 to 2022.

The paper estimates a fiscal reaction function framework for eurozone countries. The authors find evidence that changes in the harmonised index of consumer prices

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account