Missed inflation target has ‘sizeable’ fiscal impact – paper


Cases where a credible central bank persistently misses its inflation target can severely impact government finances, a new working paper finds.

The research, by Michele Andreolli and Hélène Rey, examines how the many years in which the European Central Bank fell short of its inflation target affected government budgets in the eurozone.

Because eurozone countries have very different debt structures, this can create differentials in how monetary policy impacts government finances, the authors

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 info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com 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

If you already have an account, please sign in here.

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 here: