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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.

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MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
Central Bank NewsPolicy NewsEuropean Central BankCEEMEAEurozoneEuropean Central Bank (ECB) Market NewsBriefStoryRegion
MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
Central Bank NewsPolicy NewsEuropean Central BankCEEMEAEurozoneEuropean Central Bank (ECB) Market NewsBriefStoryRegion

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