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Where is the Euro Area headed? Restoration of price stability

Author

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  • Malliaris, Anastasios G.
  • Malliaris, Mary E.

Abstract

After the two recent global shocks of the COVID-19 Pandemic of 2019–2021 and the Russian invasion of Ukraine in February 2022, the 2023–24 economic priority for the Euro Area is the fight against inflation in the midst of global economic and financial uncertainties. We focus on Euro Area inflation, analyze its diagnostics, examine inflation expectations, review theories of inflation and evaluate monetary and fiscal policies prompted because of COVID-19. Then we explore policies of the European Central Bank to fight inflation and conclude that restoration of price stability in the Euro Area will remain its central focus during 2023 and 2024.

Suggested Citation

  • Malliaris, Anastasios G. & Malliaris, Mary E., 2023. "Where is the Euro Area headed? Restoration of price stability," Journal of Policy Modeling, Elsevier, vol. 45(4), pages 848-863.
    • Handle: RePEc:eee:jpolmo:v:45:y:2023:i:4:p:848-863
    DOI: 10.1016/j.jpolmod.2023.07.008
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    References listed on IDEAS

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    Cited by:

    1. Jurkšas, Linas & Pereira, Francisco Gomes, 2024. "Fiscal stance role for ECB monetary policy," Journal of Policy Modeling, Elsevier, vol. 46(6), pages 1210-1227.
    2. Bonfatti, Andrea & Giarda, Elena, 2025. "Energy price increases and mitigation policies: Redistributive effects on Italian households," Journal of Policy Modeling, Elsevier, vol. 47(2), pages 251-275.
    3. Weidong Huo & Xiaoxian Chen & Lan Bo & Fangyong Luo, 2024. "RETRACTED ARTICLE: Navigating Global Monetary Interdependencies: A Comprehensive Analysis of ECB Rate Hikes on China’s Technology-Driven Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 18081-18115, December.

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    Keywords

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    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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