COVID-19 crisis has exacerbated global economic inequality. Two main reasons behind this K-shaped scar are (1) the imbalance in the supply of vaccines among countries and (2) the difference in the ability of governments to financially support the economy. Besides cross-country gap in growth...

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...