An Analysis of Pandemic-Era Inflation in 11 Economies

Olivier Blanchard and Ben Bernanke

No 32532, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In a collaborative project with ten central banks, we have investigated the causes of the post-pandemic global inflation, building on our earlier work for the United States. Globally, as in the United States, pandemic-era inflation was due primarily to supply disruptions and sharp increases in the prices of food and energy; however, and in sharp contrast to the 1970s, the inflationary effects of these supply shocks have not been persistent, in part due to the credibility of central bank inflation targets. As the effects of supply shocks have subsided, tight labor markets, and the rises in nominal wages, have become relatively more important sources of inflation in many countries. In several countries, including the United States, curbing wage inflation and returning price inflation to target may require a period of modestly higher unemployment.

JEL-codes: E30 E31 E32 E52 (search for similar items in EconPapers)
Date: 2024-05
New Economics Papers: this item is included in nep-ban, nep-his, nep-ifn and nep-mon
Note: EFG ME
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.nber.org/papers/w32532.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

Related works:
Working Paper: An analysis of pandemic-era inflation in 11 economies (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:32532

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w32532
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().