Inflation Risk, Energy Prices and Implicationsfor Monetary Policy and Financial Stability
The transmission mechanism of energy price changes is the focus of the project by Volker Wieland of Goethe University Frankfurt. The intention is to develop a macro-structural model to better understand the relationship between energy prices, inflation, monetary policy, and financial sector stability. This model should also make it possible to take into account changes in energy production.
Such an approach is also intended to map interactions between the energy sector and the financial sector caused by shocks or policy changes. Thus, it should be possible to model sudden cuts in certain energy supplies, as well as the transition from fossil to renewable energy.
The project was included in the 2023 grant and is scheduled to run for 24 months.
Researcher: Prof. Dr. Volker Wieland (Goethe University Frankfurt am Main)