TY - JOUR AU - Capolongo, Angela AU - Gros, Daniel PY - 2020/12/13 Y2 - 2024/03/29 TI - The ECB is running out of policy space: can fiscal policy help? JF - Economics and Business Letters JA - Econ Bus Lett VL - 9 IS - 3 SE - Special Section DO - 10.17811/ebl.9.3.2020.216-220 UR - https://reunido.uniovi.es/index.php/EBL/article/view/14674 SP - 216-220 AB - <p>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.</p> ER -