The ECB is running out of policy space: can fiscal policy help?

Authors

  • Angela Capolongo
  • Daniel Gros

DOI:

https://doi.org/10.17811/ebl.9.3.2020.216-220

Abstract

The European Central Bank is running out of instruments for addressing persistent low inflation. In this paper, we assess if a fiscal policy expansion could help the ECB reaching its target. Using ten mainstream models, we find only a modest and temporary impact of a fiscal deficit of 1% of GDP on inflation.

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Published

2020-12-13

How to Cite

Capolongo, A., & Gros, D. (2020). The ECB is running out of policy space: can fiscal policy help?. Economics and Business Letters, 9(3), 216-220. https://doi.org/10.17811/ebl.9.3.2020.216-220