This note argues that in a situation of an inelastic natural gas supply a restrictive monetary policy in the euro zone could reduce the energy bill and therefore has additional merits. A more hawkish monetary policy may be able to indirectly use monopsony power on the gas market. The welfare...

Over the last 20 years, Russia has taken several initiatives in order to become an LNG producer of global relevance. Failing to achieve this status for long while being instead a natural gas producer and exporter, Moscow has undertaken an ambitious reform process of the domestic gas system....