Abandoning HICP targeting would help the poorest – paper
Focus on discretionary spending inflation could lower recessions’ effects, Sintra conference paper argues
The European Central Bank should abandon headline inflation targeting, a new paper argues.
In the research, which will be presented at the ECB’s Forum on Central Banking in Sintra on July 1, the authors break spending to two categories: necessity spending – such as housing, utilities, basic groceries, essential healthcare, transportation to work and education – and discretionary spending, such as dining out, entertainment, travel, luxury apparel, vehicles, electronics, gym memberships and other
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