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 Centre for Economic Policy Research

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
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP17828 (application/pdf)

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)
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:cpr:ceprdp:17828

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP17828

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().