Medium-term fiscal-structural plans under the revised Stability and Growth Pact

04/30/2025 European Central Bank Central banks

This article analyses the medium-term fiscal-structural plans that euro area countries have submitted under the revised Stability and Growth Pact. It discusses the fiscal and economic implications of this framework over the short and medium term, also factoring in – on a preliminary basis and acknowledging the major uncertainty ahead – the recent proposal by the European Commission to activate the national escape clause in the Stability and Growth Pact in a coordinated manner.

Best Curacao Licensed Online Casinos 2025

04/30/2025 Economonitor Analysis

Players interested in online gambling are advised to select licensed online casinos. Credible licensing is mandatory for online casinos. Participants can expect a larger game collection consisting of all types of casino and sports betting products under a single license. Curacao-licensed Online casinos must adhere to a variety of safety and security measures for the ...

Long-term inflation expectations of consumers: an overview

04/29/2025 European Central Bank Central banks

This box explores the newly available five-year-ahead inflation expectations collected in the ECB Consumer Expectations Survey (CES). While consumers’ beliefs about longer-term inflation expectations are characterised by substantial heterogeneity and dispersion, the median five-year-ahead expectations have been close to the ECB's 2% inflation target since September 2024. This relative stability contrasts with more variable one-year and three-year expectations, which have been more sensitive to actual changes in inflation.

Why monetary policy should crack down harder during high inflation

04/29/2025 European Central Bank Central banks

The recent surge in inflation has led to a significant increase in the frequency of price changes, making prices more flexible. Conventional models assume a constant price change frequency, but in state-dependent models the frequency varies with economic conditions. Price flexibility has an impact on the effectiveness of monetary policy. In high inflation periods, frequent price changes make monetary policy more effective in reducing inflation with less impact on economic activity. Therefore, monetary policy should be more aggressive during such periods to stabilise prices efficiently.

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