independent central bank in place, politicians have an incentive to create unexpected bursts of inflation that disrupt interest … group deals previously negotiated. In the face of such inflation, the interest groups have to return to the politicians to …. However, politicians, ex ante, would prefer not to face the temptation to extract rents through inflation. The reason is that …

This paper analyses the distributional impact of high consumer inflation in the euro area and government measures to … quantify the distributional impact of inflation, income support measures and measures aimed at containing prices. The analysis … confirms that purchasing power and welfare were more severely affected by the 2022 inflation surge in lower-income households …

During the recent inflation episode, the paradigm of separated objectives for monetary and fiscal policies has shown … some limits. Fiscal policies have helped mitigate inflation. We advocate for the emergence of a new paradigm that gives …