How Can Fiscal Policy Tackle Stagflation?

Economic policy generally has many objectives. To increase income and employment, to keep prices stable, to ensure the sustainability of public finances, to provide adequate liquidity conditions and so on. Usually these goals relate to reactions to economic disturbances, such as an economic crisis, a pandemic, a war, or anything that threatens the financial well-being …

Stagnant Inflation Management

In recent times, the global economy has entered a strong inflation component based on ever-increasing energy and food prices. If the causes of price increases are limited to the region of Europe, and given that the EU is purely an importer of energy, one could argue that this is an “imported inflation” over which monetary …

Emerging Stagnant-inflation in the Eurozone/EU & USA

Inflation begins to make a threatening appearance in the EU and US since last summer due to a combination of dynamic economic recovery in COVID-19 conditions, serious problems in international trade and supply chains and upward trend in international oil and mainly gas prices. Inflation had reached high levels before the Russian invasion of Ukraine. …

Big Problems for the European Economy

The development of the war in Ukraine leaves no room for optimism for the European economy. It is clear that the longer the war lasts, the greater its economic impact. At the moment we have the terrible accuracy that comes from inflation, which in turn is due in large part to the energy crisis intensifying …

New Challenges for EU Member-Countries Economies

The war in Ukraine has entered a new phase and according to the estimates of the Americans, who have shown that they correctly record and interpret the movements of the Russians, it is going to be quite long. The Russian war machine proves to be inferior to its reputation. A month of hostilities has been …

The German Economy Is Heading for a New Recession

The scenario of stagnant inflation in the German economy is visible, which is the worst possible at this time. Extremely worrying are the data for the German economy for the fourth quarter of 2021. In fact, the forecast of Trust Economics (https://trusteconomics.eu) is that, if the problem of the pandemic continues and Q22022 the next …

Social Tensions and Zombie Companies in the EU

In the Euro-Zone and EU economy in general, two counterbalanced powerful forces are created after the end of the pandemic. On the one hand we have the net potential part of the economy that will include strong capital-intensive companies that will be driven without obstacles to their “green” transformation causing their explosive growth and gaining …

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