"The United States (US) have responded to the COVID-19 shock with a massive fiscal stimulus in 2020 and 2021. At the same time, the Federal Reserve (Fed) has maintained a highly accommodative monetary policy stance. However, the Fed's new average inflation targeting regime is being put to the test by the spike in inflation observed in recent months. Due to the global influence of the US economy and interlinkages with the euro area, questions arise over the possibility of significant spillovers from these US policy measures. Five papers were prepared by the ECON Committee's Monetary Expert Panel, looking into the channels of Transatlantic fiscal and monetary policy spillovers and their significance in the current context. This publication is provided by Policy Department A for the Committee on Economic and Monetary Affairs (ECON), ahead of the Monetary Dialogue with ECB President Lagarde on 21 June 2021."

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ISBN (PDF) : 978-92-846-8219-5