The impact of high inflation on Belgian public finances: a simulation exercise
In 2022, inflation in Belgium reached levels unseen since the 1970s. The wave of inflation in the euro area has forced the ECB to tighten monetary policy and raise interest rates. In these unusual circumstances, the question arises as to the impact of high inflation on Belgium's public finances. This question is all the more relevant in light of the challenge of reversing the structurally upward dynamics of the debt ratio.