Rise of inflation and the gender pension gap: what role for monetary policy?

This chapter looks with a gender perspective at the impact of the inflation rate on the public pension system in Europe, particularly in terms of coverage and affordability of the pension entitlements with regard to the need to maintain the system sustainably. We do not aim to provide specific and targeted policy recommendations, or to analyze the situation of a specific EU member state. In our view, the increasingly evident need to balance the components of any pension system trilemma – sustainability, adequacy, and coverage – calls for a holistic approach that extends beyond restrictive debt control measures, and combines a larger spectrum of reforms, including targeted social and labor market policies as well as increased coordination and cooperation of economic policies among EU member states. When effectively combined, such an approach will be capable of supporting the most vulnerable groups who are the most affected by the austerity measures that, despite the controversies around them, might be necessary to ensure long-term sustainability of public finances within the European Union and especially after the COVID-19 pandemic.