Building on the seminal paper of Weber et al. (2022), we provide a stress-test framework of inflation exposure and … both the ex- and internal dimensions of inflation exposure for the former EU28 countries within global production networks …

result is that the model is able to generate persistent responses in output, inflation, and total labor input to both neutral …

. Granular European data on inflation, firms, and banks confirm this mechanism. Industry-country pairs affected by a rise of … labor, which results in lower productivity, investment, and value added. Without a rise in zombie credit, inflation in …

mechanism exploiting granular inflation and firm-level data from twelve European countries. In the cross-section of industries … partial equilibrium estimates suggest that without a rise in zombie credit post 2012, annual inflation in Europe during 2012 …

Economic growth has tumbled across Europe, inflation remains too high, and financial sector risks have materialized …. Taming sticky inflation while avoiding financial stress and a recession will require tighter macroeconomic policies …