One of the most surprising features of the long current expansion has been the decline in price inflation through the … late 1990s. Some observers interpret the decline as evidence of a permanent change in the relationship between inflation … - most notably, a decrease in import prices - can account for the low inflation rates in recent years …

-kinked demand schedule for goods produced by firms. Our model can jointly account for the modest decline in inflation during the … Great Recession and the surge in inflation post-COVID-19. Because our model implies a stronger transmission of shocks when … inflation is high, it generates conditional heteroskedasticity in inflation and inflation risk. Hence, our model can generate …

This paper analyses the post-pandemic inflation dynamics in Canada using a behavioral macroeconomic model of the Bank …-pandemic inflation can be explained by these simple heuristics and traced back to the lifting of economic restrictions in mid-2020 …, triggering demand-pull inflation. This result suggests that the cost-push inflation in 2021 and beyond actually originated from a …

Post-covid inflation was predominantly driven by unexpectedly strong demand forces, not only in the United States, but … inflation near its 2-percent target---would have severely hampered an already anaemic recovery …

This paper examines the drivers of fluctuations in global inflation, defined as a common factor across monthly headline … consumer price index (CPI) inflation in G7 countries, over the past half-century. We estimate a Factor-Augmented Vector … in global inflation. Second, the contribution of global demand and oil price shocks increased over time, from 56 percent …

particular, they focus not only on real activity, which has received most attention to date, but also on inflation and its … most extreme aspects concern a real activity decline that was unusually long but less unusually deep, and an inflation … decline that was unusually deep but brief; and (3) its real activity and inflation interactions were strongly positive …

, we focus not only on real activity, which has received most attention to date, but also on inflation and its interaction … aspects concern a real activity decline that was unusually long but less unusually deep, and an inflation decline that was … unusually deep but brief; and (3) its real activity and inflation interactions were strongly positive, consistent with an …

February 2022. The sizeable cross-sectional heterogeneity in inflation is well explained by the differential exposures to a set … indicators, and three countercyclical factors, i.e., the global unemployment rate, precious metals price, and world uncertainty … additional global factors, revealing that economies with procyclical inflation generally have higher inflation than economies …

States and the euro area. For many of the basic items in the basket of goods used to estimate inflation, the effects of oil … through to core inflation (or rather to inflation excluding food and energy products) by means of macroeconomic factors; while …