
Inflation doesn’t just raise prices — it can raise taxes.
In #Europe, the 2019–23 #inflation surge caused #FiscalDrag in 8 countries: 🇨🇾🇪🇸🇲🇹🇮🇹🇪🇪🇳🇱🇧🇪🇭🇺
➡️ increasing effective tax rates by ~1pp &
➡️ tax revenues by ~0.5% of GDP
📘EconPol Policy Brief: ifo.de/en/econpol/pub…

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