Economic analysis: what it is – Dictionary of Economics

One of the pillars of the European Central Bank’s framework for the comprehensive analysis of risks to price stability, which forms the basis of the monetary policy decisions of the Governing Council. The economic analysis focuses, fundamentally, on the assessment of the existing economic and financial situation and on the implicit risks in the short to medium term for price stability from the perspective of the interaction of supply and demand in the goods markets. , services and factors in the aforementioned time horizons. Due attention is paid to the need to identify the nature of shocks affecting the economy, their effects on cost and price behavior and the short to medium term outlook for their propagation in the economy. See also “Monetary Analysis”.

Origin: Bank of Spain