Soft or strong: the art of monetary tightening

Christophe Blot (1) , Jérôme Creel (1)

1 OFCE - Observatoire français des conjonctures économiques (Sciences Po)

The rise of inflation has sparked tightening measures by the ECB. The paper discusses the causes of this rise and the factors that impinge on the effectiveness of ECB policy at curbing inflation. Drawing on own assessment of the respective trends in these factors, we recommend a careful approach to monetary policy. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 26 September 2022.

Domaines: Économie et finance quantitative [q-fin]

Christophe Blot, Jérôme Creel. Soft or strong: the art of monetary tightening. PE 733.978, European Parliament's Committee on Economic and Monetary Affairs (ECON). 2023. ⟨hal-03954545⟩