-side theory of inflation that takes the distribution of relative price changes as an aggregate supply shock. The results indicate … that the positive correlation between inflation and relative price variability is a robust empirical regularity that gives … some credibility to the supplyside theory of inflation. During the early 1980s this relationship, though positive, weakens …

When faced with a relative price shock, monetary authorities often aim to contain its second round effects on inflation … while accepting first round effects. We analyze the experience of South Africa and other inflation targeters to explore … whether and when this policy prescription implies changing the monetary policy stance. Inflation targeting central banks …

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 …