A0542
Title: The drivers of post-pandemic inflation
Authors: Giorgio Primiceri - Northwestern University (United States) [presenting]
Domenico Giannone - Johns Hopkins University (United States)
Abstract: Post-covid inflation was predominantly driven by unexpectedly strong demand forces, not only in the United States, but also in the Euro Area. These forces resulted from a combination of surprisingly robust pent-up demand following the pandemic restrictions, exceptionally expansionary fiscal policies, and an unusually accommodative monetary stance by the Federal Reserve and the ECB. This monetary accommodation has mitigated the recessionary effects of adverse supply shocks and supported the recovery, though it has come at the cost of higher inflation.
