Traditional structural macroeconometric models still play a key role in forecasting – for example, the Area-widemodel (AWM) of the ECB – and the econometric models of the euro-area central banks. Recently, DSGE models have been developed in the Eurosystem. Some of these models are still under construction and some are already used for policy simulations.
The public debate on inclusive growth policies often takes the development of economic inequality over recent decades as a starting point. Rising inequality is seen as a major challenge around the world.2 However, the perception of steadily rising inequality depends strongly on the indicator used.