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Euro Area Inflation and ECB Policy in a Global Environment


  • Blot Christophe
  • Creel Jérôme
  • Hubert Paul
  • Labondance Fabien
  • Lagot Xavier


This paper contributes to the literature investigating the role of global factors in determining Euro area inflation, using a wide list of potential candidates to measure global factors. We show that roughly 50 percent of inflation is explained by global factors; and that the ECB has an impact on the domestic part of inflation. This calls for adjusting the definition of the ECB target to the domestic-driven indicator of inflation which we develop.

Suggested Citation

  • Blot Christophe & Creel Jérôme & Hubert Paul & Labondance Fabien & Lagot Xavier, 2016. "Euro Area Inflation and ECB Policy in a Global Environment," Politica economica, Società editrice il Mulino, issue 3, pages 539-554.
  • Handle: RePEc:mul:je8794:doi:10.1429/85010:y:2016:i:3:p:539-554

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    References listed on IDEAS

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