We study the impact of the COVID-19 pandemic on euro area inflation and how it compares to the experiences of other countries, such as the United States, over the two-year period 2020-21. Our model-based calibration exercises deliver four key results: (1) compositional effects, or the switch...

As trade barriers at the border have fallen through successive trade negotiations, domestic regulation has emerged as a source of residual but potentially significant trade barriers. Recognising the importance of participating in intensified global competition, countries increasingly see...