Quantifying the Inflationary Impact of Fiscal Stimulus under Supply Constraints

Julian di Giovanni, Sebnem Kalemli-Ozcan, Álvaro Silva and Muhammed A. Yildirim ()
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Muhammed A. Yildirim: https://growthlab.cid.harvard.edu/people/muhammed-yildirim

No 1050, Staff Reports from Federal Reserve Bank of New York

Abstract: This paper builds on Baqaee and Farhi (2022) and di Giovanni et al. (2022) to quantify the contribution of fiscal policy to U.S. inflation over the December 2019-June 2022 period. Model calibrations show that aggregate demand shocks explain roughly two-thirds of total model-based inflation, and that the fiscal stimulus contributed half or more of the total aggregate demand effect.

Keywords: inflation; fiscal policy; supply constraints (search for similar items in EconPapers)
JEL-codes: E23 E31 E32 (search for similar items in EconPapers)
Pages: 10
Date: 2023-02-01
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Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Quantifying the Inflationary Impact of Fiscal Stimulus under Supply Constraints (2023)
Working Paper: Quantifying the Inflationary Impact of Fiscal Stimulus Under Supply Constraints (2023)
Working Paper: Quantifying the Inflationary Impact of Fiscal Stimulus Under Supply Constraints (2023)
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