Quantifying the Inflationary Impact of Fiscal Stimulus Under Supply Constraints

Julian di Giovanni, Kalemli-Özcan, Á¹¢ebnem, Álvaro Silva and Muhammed Yildirim

No 17828, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper builds on Baqaee and Farhi (2022) and di Giovanni et al. (2022) to quantify the contribution of fiscal policy on U.S. inflation over the Dec-2019 to 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: Fiscal policy; Supply constraints (search for similar items in EconPapers)
JEL-codes: E23 E31 E32 (search for similar items in EconPapers)
Date: 2023-01
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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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