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Spending elasticities measure the reaction of different government spending components to the business cycle. They are important inputs for fiscal forecasts, and they are particularly relevant in the context of European Union (EU) fiscal rules, as elasticity estimates enter the estimation of...
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the depreciation of the exchange rate leads to an increase in imported, producer and consumer inflation of 0.42 p.p., 0 … imported inflation and producer inflation does not seem translate into higher ERPT in consumer inflation. Further studies could … look at: First, the nature of the ERPT on different types of inflation and why this is heterogeneous in a time varying …
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