What caused the post-pandemic inflation in Italy? An application of Bernanke and Blanchard (2023)

Massimiliano Pisani and Alex Tagliabracci

No 851, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: We estimate using Italian data the model proposed by Bernanke and Blanchard (2023) to explain the dynamics of prices and wages in the post-pandemic period in Italy. The empirical analysis shows that the model performs well in capturing inflation developments, which were mainly driven by the energy and food components, but the fit of the wage dynamics is not entirely satisfactory as the specific features of the Italian labor market are not adequately described by the econometric specification considered.

Keywords: inflation; wages; inflation expectations; energy; COVID-19 (search for similar items in EconPapers)
JEL-codes: C5 E3 J3 (search for similar items in EconPapers)
Date: 2024-06
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.bancaditalia.it/pubblicazioni/qef/2024-0851/QEF_851_24.pdf (application/pdf)

Related works:
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:bdi:opques:qef_851_24

Access Statistics for this paper

More papers in Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().