Current inflation in Europe should be fought early and decisively. This is one of the lessons learned from the time of the oil price shocks, according to the latest European Advisory Group (EEAG) report. “In the years since the global financial crisis, inflation rates have always been very low. Policymakers and the public have become accustomed to tackling economic problems with expansionary monetary policy and ever higher public debt,” says Clemens Fuest, President of the ifo Institute and one of the report’s authors.
