The European Central Bank (ECB) has just published its Structural Issues Report, which deals with “Energy Markets and the Euro Area Macroeconomy”.
The study analyses the impact of energy price fluctuations on the euro-area macroeconomy.
The response of euro area output to large energy price changes is determined by the level of energy dependency and the intensity of production, as well as by the degree of flexibility of the economy more generally. The promotion of energy efficiency and the flexibility of the euro area economy remain crucial to minimizing the costs of energy price volatility.
The full text is available on the web.