We provide theory and evidence that relative price shocks can cause aggregate inflation and act as aggregate supply … on U.S. core inflation while depressing U.S. real activity. In a two-sector monetary model with upstream and downstream … predictions. Motivated by post-COVID inflation in the U.S., a model experiment shows that a one-time relative price shock …

Argentina began 2024 with the odd privilege of becoming the country with the highest inflation in the world. Although … inflation has once again become a first-order global issue due to the impact on the prices of basic goods of the Covid-19 … pandemic and the war in Ukraine, Argentinian inflation rates were well above the global and even regional average for the …