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The long-run effects of pandemics on inflation: Will this time be different?

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We find that past major pandemics have led to a significant decline in trend inflation in Europe that lasts for more than a decade. The effects of the COVID-19 pandemic… Click to show full abstract

We find that past major pandemics have led to a significant decline in trend inflation in Europe that lasts for more than a decade. The effects of the COVID-19 pandemic on trend inflation could, however, be different this time around.

Keywords: effects pandemics; time; pandemics inflation; run effects; inflation; long run

Journal Title: Economics Letters
Year Published: 2021

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