For more detail on these shocks, see Lagarde, C. (2022), “Monetary policy in a high inflation environment: commitment and clarity”, lecture organised by Eesti Pank and dedicated to Professor Ragnar Nurkse, Tallinn, 4 November. 2.
Cumulatively, from the second quarter of 2022 up to the latest data point available (the first quarter of 2023), the euro area has transferred € billion to the rest of the world as a result of the terms of trade losses. This figure corresponds to 1.6% of euro area GDP. 3.