Fisc-inflation, it is also the fiscal deficit that pushes prices up

It is not the quantity of money, but the public debt that determines the increase in prices. And despite Europe saying it is flexible, in the meantime budget laws need to be made knowing that the constraints imposed by the ECB will soon return

Ignazio Visco’s irritation at the intemperance of the ECB hawks, Paolo Gentiloni’s advances on the reform of the Stability Pact and Giancarlo Giorgetti’s alarm over the impact of high money on the public budget point in the same direction: inflation is not fought only by raising interest rates, there is a need for coordination between monetary policy and fiscal policy, between the central bank and governments without undermining sacred independence. In short, is that “fiscal theory of inflation” elaborated for the first time in 1981 by two eminent American economists: Thomas Sargent, Nobel Prize winner in 2011, and Neil Wallace, the champions of the “new classical economy” back in fashion? Of course, this is a theoretical approach re-evaluated by the Bank for International Settlements (Bri), the bank of central banks, which sought confirmation with a study projected over four decades and extended to the most industrialized countries: “Fiscal deficit and inflation risk” by Ryan Banerjee, Valerie Boctor, Aaron Mehrotra and Fabrizio Zampolli.