Quantifying the inflationary impact of fiscal stimulus under supply constraints

This paper builds on Baqaee and Farhi (2022) and di Giovanni et al. (2022) to quantify the contribution of fiscal policy to U.S. inflation over the December 2019-June 2022 period. Model calibrations show that aggregate demand shocks explain roughly two-thirds of total model-based inflation, and that the fiscal stimulus contributed half or more of the total aggregate demand effect.

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Year of publication:	2023
Authors:	Di Giovanni, Julian ; Kalemli-Ozcan, Sebnem ; Silva, Álvaro ; Yıldırım, Muhammed Ali
Publisher:	New York, NY : Federal Reserve Bank of New York
Subject:	Finanzpolitik \| Wirkungsanalyse \| Gesamtwirtschaftliche Nachfrage \| Inflation \| USA \| inflation \| fiscal policy \| supply constraints

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Series:	Staff Reports ; 1050
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1837175209 [GVK] hdl:10419/272863 [Handle]
Classification:	E23 - Production ; E31 - Price Level; Inflation; Deflation ; E32 - Business Fluctuations; Cycles
Source:	EconStor

Persistent link: https://www.econbiz.de/10014302772