Why does the recovery show so little inflation?
In-Depth Analysis
15-02-2018
We investigate the determinants of inflation in the euro area since 2000 and show that the most important determinants are inflation expectations and wage growth. Both indicators have contributed negatively to inflation since 2014 but inflation expectations less so since 2015 whereas the contribution of wage growth has remained negative. We suggest that structural reforms may have put a drag on the ability of the ECB to reach its inflation target rapidly.
In-Depth Analysis
External author
Christophe BLOT, Jérôme CREEL, Paul HUBERT, OFCE (Sciences Po)
About this document
Publication type
Keyword
- economic analysis
- economic analysis
- economic conditions
- economic growth
- economic recovery
- ECONOMICS
- employment
- EMPLOYMENT AND WORKING CONDITIONS
- EU institutions and European civil service
- EU statistics
- euro area
- European Central Bank
- EUROPEAN UNION
- FINANCE
- inflation
- labour market
- labour market
- monetary economics
- monetary relations
- personnel management and staff remuneration
- single monetary policy
- unemployment
- wage determination