We investigate the possible asymmetric response of inflation expectations to oil price and policy uncertainty shocks. Unlike other studies that assume symmetric effects, our study finds asymmetric effects of oil price and policy uncertainty on inflation expectations for positive and negative...

Many global shocks, including the renegotiation of NAFTA, the United States-China trade war, the Brexit, and the COVID-19 pandemic, may have recently influenced the inflation spillover in the G7 countries. The current literature overlooks the influence of these important events on the inflation...