Fighting (the effects of) inflation: government measures in Austria and the EU

Doris Prammer () and Lukas Reiss ()
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Doris Prammer: Oesterreichische Nationalbank
Lukas Reiss: Oesterreichische Nationalbank, Economic Analysis Division

Monetary Policy & the Economy, 2023, issue Q4/22-Q1/23, 95-106

Abstract: The extraordinarily high inflation in the euro area has led to substantial discretionary fiscal policy action to fight inflation in Austria and all other EU member states. Moreover, EU-wide emergency interventions to address high energy prices have come into force, comprising measures to skim off windfall profits from energy producers. In contrast to other EU member states, Austria has stayed relatively true to the approach of relying more on income measures as opposed to mere price measures: It has relied to a lesser extent on subsidies or tax cuts to reduce the costs of “brown” energy such as fuels, and to a larger extent on broad-based transfers and tax cuts to support all households. The large scale of the of the overall package is preventing a substantial decline in aggregate real household incomes in 2022.

Keywords: energy taxes; fiscal policy; high inflation (search for similar items in EconPapers)
JEL-codes: E31 H12 H53 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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