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Inflation at high level could see positive impact on public finances be reversed

Inflation at high level could see positive impact on public finances be reversed
  • When the inflation is generated by an external shock and runs at a high level, its positive impact on public finances can be reversed
  • According to the simulations, it takes one year for the euro area budget balance to be adversely affected by the inflation surge
  • In subsequent years, however, spending pressures intensify and more than offset the benefits on the reven... Read More
Posted: Feb 13 2023, 10:10
Author Name: forexlive
Views: 110512

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