The European Central Bank’s ‘late’ response to the post-pandemic inflationary wave offset its distributional effects, a new study published by the bank concludes.

In their paper, published on February 27, Michał Brzoza-Brzezina and Rodolfo Dinis Rigato develop a model based on the eurozone’s vastly different households. They account for different cohorts of workers consuming and saving both liquid and illiquid assets, as well for demographic structures and income and wealth inequality.

They apply