Demand-Driven Inflation

Structural VARs and a DSGE model establish that post-pandemic inflation in the US and Euro Area was predominantly driven by strong demand from fiscal expansion and accommodative policy.

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Featured in No. 139 on 13 Nov 2026 · 4 days after release

Stacked area charts decomposing US GDP and CPI shocks into demand, supply, and other components. — Figure 3: Historical decomposition of GDP and inflation dynamics, after controlling for the covid factor of Stock and Watson (2025). Sources: data from the Bureau of Economic Analysis and the Bureau of Labor Statistics; accessed via Haver Analytics; computations by authors and Stock and Watson (202…

Released: 9 Nov 2026
First featured: No. 139 · 13 Nov 2026
Published in: Not yet, as far as Semantic Scholar knows
Fanfare: 3 of 5
Identifier: RePEc:nbr:nberwo:35980
Authors: Domenico Giannone and Giorgio Primiceri

Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).

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