Beyer, Robert; Duttagupta, Rupa; Fotiou, Alexandra; … - 2023
This paper employs two established macroeconomic models to show that fiscal policy in the euro area can help monetary … third year across the euro area would ease the policy interest rate by 30-50 basis points relative to the baseline scenario … risks. In the current context of elevated inflation in all euro area economies, the findings suggest two key takeaways …