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MNI BRIEF: Limited Inflation Effect From Green Spending-ECB


Green fiscal policy measures should have only a limited, but slightly increasing impact on inflation over the medium-term, with only a small effect on GDP, according to the European Central Bank's Economic Bulletin.

“The long term impact on aggregate real GDP could even be positive given the considerable green investment needs. And the impact on potential growth could also be positive, despite being surrounded by significant uncertainties and dependent on the policy strategy chosen,” the study said.


MNI Frankfurt Bureau | +49-69-720-146 |
MNI Frankfurt Bureau | +49-69-720-146 |

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