ContextSpeech at the Toulouse School of Economics; the Banque de France keeps prices stable and measures how energy and trade shocks hit France and the euro area.
Why it mattersVilleroy measures how the energy shock is shared across French society.
Problems raised
Energy prices sharply worsened Europe's terms of trade.
Import prices rise much faster than export prices.
The cost of the shock must be shared across society.
Solutions proposed
Measure the size and distribution of the shock carefully.
Target support to the most affected households and firms.
Keep monetary policy focused on containing inflation.
