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An analysis of pandemic-era inflation in 11 economies
We recently proposed a simple model of the inflation process, estimated it on post-1990 U.S. data, and used the results to identify the shocks and transmission mechanisms that have determined U.S. inflation since 2019 (Bernanke and Blanchard 2023, hereafter BB). Ten central banks expressed interest in using our model to study the recent inflation in their own economies, and we agreed to do a joint project. This paper summarizes and discusses in broad terms the results of the project, leaving details to papers and reports produced by staff at the cooperating central banks. The 10 are Belgium, Canada, France, Italy, Japan, Germany, Netherlands, Spain, U.K. and the European Central bank.
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