If we take 1972:Q4, in which inflation was 3.4 percent, as the starting point, the increase in inflation to the 1974 peak was 8 percentage points. 5  See, for example, Blanchard and Gali (2007) and the references therein.
3.1  Heterogeneity as a challenge for monetary policy  One of the aggravating factors is heterogeneity in terms of growth, inflation and competitiveness. With regard to the euro-area countries’ economic performance, we are currently observing a widening divergence.