DiscoverAUC Fundamentals of MacroeconomicsHow does the way the EU/Euro Area is set up influence the fight against inflation?
How does the way the EU/Euro Area is set up influence the fight against inflation?

How does the way the EU/Euro Area is set up influence the fight against inflation?

Update: 2023-12-30
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In this podcast we discuss inflation in the euro-zone and how best to tackle this. As the stability of the economies and with that inflation rates differ profusely within the euro-zone it can be difficult to tackle inflation in all the countries at once. We dive deeper into the monetary policy set by the European Bank and how member states can back this up by using fiscal policy, particularly in cases when the inflation rate is higher than in other countries within the euro-zone. 

For more information on relevance in the news see the following sources:

https://www.ecb.europa.eu/pub/economic-bulletin/focus/2022/html/ecb.ebbox202204_01~68ef3c3dc6.en.html

https://apnews.com/article/europe-inflation-economic-growth-236390a5ae8309d17779b03d0a863c08 

https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Inflation_in_the_euro_area

For more information on Inflation in general see the following sources

https://corporatefinanceinstitute.com/resources/economics/headlineinflation/#:~:text=The%20headline%20inflation%20figure%20includes 

https://www.investopedia.com/insights/what-is-the-quantity-theory-of-money/ 

For more information on monetary policy and the ECB see the following sources: 

https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Inflation_in_the_euro_area

https://european-union.europa.eu/institutions-law-budget/institutions-and-bodies/search-all-eu-institutions-and-bodies/european-central-bank-ecb_en#:~:text=The%20European%20Central%20Bank%20 

For more general  information on fiscal policies in the eurozone see the following sources: 

https://www.ecb.europa.eu/pub/economic-bulletin/articles/2023/html/ecb.ebart202302_01~2d46eff8f.en.html 

https://www.rabobank.com/knowledge/d011370092-eurozone-inflation-differentials-likely-t-stick-around

https://econofact.org/fiscal-policy-disinflation-and-the-safety-net 

For more information on the Netherlands see the following sources

https://www.dnb.nl/en/general-news/press-release-2023/economic-growth-slows-inflation-rmains-persistent/ 

https://www.acm.nl/en/publications/acm-warns-about-fixed-contracts-prices-above-price-ca#:~:text=The%20maximum%20prices%20of%20the 

https://www.government.nl/topics/energy-crisis/cabinet-plans-price-cap-for-gas-and-electricy 

https://www.cpb.nl/en/energy-price-scenarios#:~:text=In%20the%20 

https://www.government.nl/latest/news/2022/03/21/measures-to-cushion-impact-of-rising-enrgy-prices-and-inflation 

For more information on Lithuania see the following sources: 

https://doi.org/10.5089/9798400254048.002.A001 

https://www.lrt.lt/en/news-in-english/19/1739395/inflation-in-lithuania-higher-because-its-economy-did-better-during-pandemic-minister says#:~:text=%E2%80%9CGoods%20such%20as%20energy%2C%20transport 

References (APA format)

Adolfsen, J. F., Kuik, F., Lis, E. M., & Schuler, T. (2022). The impact of the war in Ukraine on euro area energy markets. Www.ecb.europa.eu, 4. https://www.ecb.europa.eu/pub/economic-bulletin/focus/2022/html/ecb.ebbox202204_01~68ef3c3dc6.en.html 

Autoriteit Consument & Markt. (2023, September 7). ACM warns about fixed contracts with prices above the price cap | ACM.nl. Www.acm.nl. https://www.acm.nl/en/publications/acm-warns-about-fixed-contracts-prices-above-price-cap#:~:text=The%20maximum%20prices%20of%20the 

Bańkowski, K., Bouabdallah, O., Checherita-Westphal, C., Freier, M., Jacquinot, P., & Muggenthaler, P. (2023). Fiscal policy and high inflation. Www.ecb.europa.eu. https://www.ecb.europa.eu/pub/economic-bulletin/articles/2023/html/ecb.ebart202302_01~2bd46eff8f.en.html 

Barone, A. (2022, November 23). What is the Quantity Theory of Money? Investopedia. https://www.investopedia.com/insights/what-is-the-quantity-theory-of-money/ 

Bonnell, C. (2023, November 30). Inflation in Europe falls to 2.4% as interest rates pack a punch. But the economy has stalled. AP News. https://apnews.com/article/europe-inflation-economic-growth-236390a5ae8309d17779b03d0a863c08 

Economic growth slows, inflation remains persistent. (2023, June 19). Www.dnb.nl. https://www.dnb.nl/en/general-news/press-release-2023/economic-growth-slows-inflation-remains-persistent/ 

Energy price scenarios. (2022, December 6). Www.cpb.nl. https://www.cpb.nl/en/energy-price-scenarios#:~:text=In%20the%20 

European Central Bank. (2022). Fiscal policies. European Central Bank. https://www.ecb.europa.eu/mopo/eaec/fiscal/html/index.en.html 

European Union. (n.d.). European Central Bank (ECB) | European Union. European-Union.europa.eu. Retrieved December 20, 2023, from https://european-union.europa.eu/institutions-law-budget/institutions-and-bodies/search-all-eu-institutions-and-bodies/european-central-bank-ecb_en#:~:text=The%20European%20Central%20Bank%20 

Eurostat. (2023). Inflation in the Euro Area - Statistics Explained. Ec.europa.eu. https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Inflation_in_the_euro_area 

Gaspar, V., Goncalves, C., & Poplawski-Ribeiro, M. (2023, November 2). Fiscal Policy, Disinflation, and the Safety Net | Econofact. Econofact.org. https://econofact.org/fiscal-policy-disinflation-and-the-safety-net 

Harn, M. W., Elwin de Groot, Erik-Jan van. (2023, June 1). Eurozone inflation differentials likely to stick around. Rabobank. https://www.rabobank.com/knowledge/d011370092-eurozone-inflation-differentials-likely-to-stick-around 

Headline Inflation. (n.d.). Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/economics/headline-inflation/#:~:text=The%20headline%20inflation%20figure%20includes 

Inflation in Lithuania higher because its economy did bet

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How does the way the EU/Euro Area is set up influence the fight against inflation?

How does the way the EU/Euro Area is set up influence the fight against inflation?

Björn Brügemann