How Much ECB Tightening is Needed to Get Inflation Under Control?
Release Date:
Policy rates have increased by 2,5% already since the summer of 2022, but how much more is needed to get Euro Area inflation back to 2%? We discuss:
the inflationary situation in Europe,
the main aspects of historical inflation surges, and
simple calculations that provide a perspective on the required amount of tightening.
How Much ECB Tightening is Needed to Get Inflation Under Control?