Sticky price models based on menu costs predict that countries with high trend inflation should have (i) smaller impact … effects of demand shocks on output and (ii) less persistent output fluctuations, relative to low-trend inflation countries …. These predictions are tested, controlling for changes in trend inflation, using a country-specific approach. The results do …

We analyze the evolution and drivers of inflation during the pandemic and the likely trajectory of inflation in the … near-term using an event study of inflation around global recessions and a factor-augmented vector auto-regression (FAVAR …) model. We report three main results. First, the decline in global inflation during the 2020 global recession was the most …

, the collapse of the Bretton Woods system, the Great Inflation, the Latin American hyperinflation(s), the Great Moderation … until the highest global inflation spike in two generations which started in 2021. The book covers these dynamics in … higher inflation, lower economic growth, larger budget deficits, increased private sector debt and greater global economic …

-specific models include a Phillips curve determining inflation, an IS curve determining output, a Taylor Rule determining interest … through error spillover effects. Bootstrapped error bands are also provided for the cross country responses of a shock to the …

-specific models include a Phillips curve determining inflation, an IS curve determining output, a Taylor Rule determining interest … through error spillover effects. Bootstrapped error bands are also provided for the cross country responses of a shock to the …