Author : International Monetary Fund. European Dept.
Release : 2023-07-19
Genre : Business & Economics
Kind : eBook
Book Rating : /5 ( reviews)
Book Synopsis Euro Area Policies by : International Monetary Fund. European Dept.
Download or read book Euro Area Policies written by International Monetary Fund. European Dept.. This book was released on 2023-07-19. Available in PDF, EPUB and Kindle. Book excerpt: The euro area economy has shown resilience in the aftermath of Russia’s invasion of Ukraine and the largest terms of trade loss in several decades, reflecting strong policy efforts to secure gas supplies and cushion disposable incomes. Nonetheless, activity has weakened, with the economy slipping into a mild technical recession in early 2023, and inflation is far above target. While headline inflation has started to decline with the easing of supply bottlenecks and energy prices, core inflation is proving more persistent. Euro area banks are well capitalized and liquid overall, but the rapid tightening of monetary policy after a prolonged period of accommodation can expose pockets of weakness in the financial system, including in the nonbank sector.