We at the CNB studied with interest the documents for the government coalition's press conference on 11 May called the "Recovery package" (Czech Ministry of Finance, 2023a, 2023b). We welcome the government's austerity efforts. The implementation of the package is in the hands of the government and parliament, not in ours, so I will not comment on the individual steps. Generally speaking, it is essential in the fight against inflation that the state budget deficit falls as much as possible compared with the actual outcome of the previous year, not just compared with the plan. It would be ideal for the fight against inflation if expenditure declined year on year compared with the actual outcome of the previous year (to dampen demand) and indirect taxes were not increased (to avoid increasing inflation). However, that is a political decision and it is not within my competence. In any case, we need our tightest monetary policy in twenty years to be accompanied by a credible budget consolidation plan, which the public will trust to support our efforts to reduce inflation. Inflation is our responsibility. However, we are in this together with the government. We need support from fiscal policy. Reducing inflation is in the country's interest. We have already tamed several money flows in the economy. Above all, reducing the country's debt is now needed for a long-lasting return of inflation to low levels. References Adam, T. and Michl, A. (2022). Inflace v R: cyklický i acyklický píbh? [Inflation in the Czech Republic: A cyclical or acyclical story?]

Fiskální deficit a emise penz v eské republice v dob pandemie covidu-19 [The fiscal deficit and money issuance in the Czech Republic during the Covid-19 pandemic]. Politická ekonomie, 71(1), 68–88. DOI: 10.18267/j. polek.1375 Mandel, M. and Dvoák, P. (2021). Co nás eká s rostoucím státním dluhem? [What awaits us with rising government debt?] Bankovnictví 2021, . 6, 38–41. ISSN 12124273. Mandel, M. and Dvoák, P. (2022). Souasná globální inflace – pípad sui generis? [Current global inflation – a sui generis case?] Bankovnictví 2022, ro. 29(1), 38–41. ISSN 1212-4273. Mandel, M. (2022). Jsou souasné úrokové sazby dostaten vysoké? Problémy konceptu kladné reálné úrokové míry [Are current interest rates high enough? Problems of the concept of a positive real interest rate.]. Bankovnictví 2022, ro. 29(6), 50–53. ISSN 1212-4273. Michl, A. (2019a). Peníze a inflace: ztracená kointegrace [Money and inflation: Lost cointegration]. Politická ekonomie, 67(4), 385–405. DOI: 10.18267/j.polek.1255 Michl, A. (2019b). Ten years later: Lessons for DSGE builders and Czech policy makers . Review of Economic Perspectives, 19(3), 159–174. DOI: 10.2478/revecp-2019-0009 Michl, A. (2022, 23 October). Governor's opening remarks at the CNB Discussion Forum [Audiovisual recording]. Czech National Bank. Michl, A. (2023, 5 January). Zanme spoit. A to hned! [Let us start saving. Now!] Mladá fronta DNES. 6/7  BIS - Central bankers' speeches  Ministry of Finance of the Czech Republic. (2023a). OZDRAVNÝ BALÍEK 2024/2025 [Recovery package 2024/2025]. Ministry of Finance of the Czech Republic. (2023b). Píloha tiskové zprávy k Ozdravnému balíku 2024/2025 [Annex to the press release on Recovery package 2024 /2025]. Nováková, M. (2023, 3 May).