Bårdsen, Gunnar; Nymoen, Ragnar - 2024 - Preliminary version, 11 May 2024
We specify an empirical model of US inflation which has the dynamics of wage and price setting at its core. In the … studies of pandemic-era inflation have confirmed that shocks to energy prices were important, but have not included imported … inflation more broadly. Estimation and simulation results indicate that wage growth was strongly affected early in the pandemic …