Beyer, Robert; Duttagupta, Rupa; Fotiou, Alexandra; … - 2023
This paper employs two established macroeconomic models to show that fiscal policy in the euro area can help monetary … third year across the euro area would ease the policy interest rate by 30-50 basis points relative to the baseline scenario …, while lowering inflation. It would also put the public debt-to-GDP ratio on a downward path, with the output costs reversing …