Accounting for imported and domestically generated inflation: Supply chains, monetary policy, and the UK's cost of living crisis
Inflation has increased sharply since the start of 2021 as the global economy grapples with the aftermath of the COVID-19 pandemic and Russia's invasion of Ukraine. Swati Dhingra and Jack Page draw on a long tradition of research on input-output linkages to trace the proximate contributions of energy and import costs to the cost-of-living crisis in the UK. Overlooking the role of energy and imports in the domestic supply chain overestimates the extent of domestically generated inflation.
25 May 2023
Vox EU
https://cepr.org/voxeu/columns/accounting-imported-and-domestically-generated-inflation-supply-chains-monetary
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