The macro-economic impact of the cost crisis

Dramatic changes are happening in Europe. The extended Covid crisis and then the war in Ukraine have caused major supply shocks hitting the world economy. Europe is especially affected by the cost and scarcity of energy supplies (gas, oil, nuclear energy from France), but also by breakdowns and delays in international supply chains and a tight labour market. Most importantly, the high rate of inflation is reducing living standards, especially for low- and middle-income groups. These events require new approaches to policymaking.

During this seminar, in cooperation with FES London and hosted by the European Institute at the LSE, we discussed how to adapt the monetary-fiscal policy mix in Europe and devise new solutions to curtail inflation without harming stability, climate and energy investment needs and the purchasing power of the working class. The purpose was an open discussion between policymakers and internationally known economists.

The ideas explored in this seminar were summarised in a policy brief.

Please contact Euléane Omez for more information: Euleane.omez@feps-europe.eu