Blanchard, Olivier; Bernanke, Ben - National Bureau of Economic Research - 2023
We answer the question posed by the title by specifying and estimating a simple dynamic model of prices, wages, and … product-market and labor-market shocks on prices and nominal wages and to quantify the sources of U.S. pandemic-era inflation …, most of the inflation surge that began in 2021 was the result of shocks to prices given wages. These shocks included sharp …
