We show that “zombie credit”—subsidized credit to nonviable firms—has a disinflationary
effect. By keeping these firms afloat, zombie credit creates excess aggregate supply, thereby …

We explain the role of the Phillips Curve in the analysis of the economic outlook and the
formulation of monetary policy at the ECB. First, revisiting the structural Phillips Curve, we …

The coronavirus crisis reveals the shortcomings of the Euro Area (EA), which were already
evident after the global financial crisis. We show that the self-imposed constraints within the …

The problem of inflation is crucial for ensuring sustainable economic growth of the country.
In the broadest sense, the economic dimension of sustainable development represents the …

Yes, they would. In a randomized control trial, we provide groups of respondents from the
Bundesbank Online Panel Households with information about a hypothetical alternative …

Accurate cost forecasting in budget planning and contract bidding is crucial for the success
of construction projects. Linear models such as the autoregressive integrated moving …

We propose a framework to identify a rich set of structural drivers of inflation in order to
understand the role of the multiple and concomitant sources of the post-pandemic inflation …

Income inequality has been identified as a source of many social woes. It is believed to
increase the risk of financial crises (Kumhof, Ranciere, and Winant, 2015), reduce …

This paper investigates the role of long-term inflation expectations for the monetary
transmission mechanism and the conduct of monetary policy in a structural VAR framework …

We use a simple macroeconomic model proposed by Bernanke and Blanchard (2023) to
investigate the reasons for the recent sharp rise in inflation. Applied to Germany and the …