More sustainable euro zone inflation coming: ECB’s Knot By Reuters
FRANKFURT (Reuters) - Copious budget spending in the euro zone is finally generating a sustainable rise in inflation but more flexible fiscal rules will be needed for years as monetary policy remains constrained, European Central Bank policymaker Klaas Knot said on Friday. Governments have spent record amounts over the past year to save their economies from a pandemic-induced downturn but as the recovery takes hold, a debate is underway on how and when to bring back temporarily suspended budget rules. "Now we are in a better position to see a sustainable increase in inflationary...
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