Mattia Ricci - The Impact of the Inflationary Shock in the Eurozone through Consumption, Income and Wealth

• Presenting author: Mattia Ricci (European Commission)

• Authors: Boris Chafwehé, Mattia Ricci, Daniel Stöhlker

• Session: B03C - Inflation [1] - Tuesday 14:00-15:30 - Senate Hall

• Slides: PDF

In this work we estimate the impact of the 2022 inflationary shock on Eurozone households. In our analysis we consider the direct impact from inflation on households through three main channels: consumption, income and wealth. Moreover, given that policy makers responded to the inflationary shock with significant fiscal and monetary policy adjustments, we complement our calculations considering the impact deriving from such initiatives. For the purpose of our analysis, we employ and extend the household balance sheet framework of Cardoso et al. (2022).