‘Pricing cascades’ crucial to post-Covid inflation – study
ECB researchers say speed and interdependencies were key components to shock
Pent-up demand and opportunistic price hikes do not fully explain the post-pandemic inflation crisis, a study from the European Central Bank has found.
The research, published on January 27, states that the rising price of one input cost can trigger “pricing cascades” because of the web of dependencies behind goods and services.
The authors, Mishel Ghassibe and Anton Nakov, say inflation shocks are better explained by “the effects of the economy’s production network and ‘state‑dependent’ pricing
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com test test test
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com test test test
More on Monetary Policy
Bank of Ghana slashes rates by 250bp
Institution says fiscal consolidation and plummeting inflation justified additional easing
Fed risks president’s ire by holding rates
Experts say decision was obvious way to go, given US labour market and inflation figures
Banxico to slow easing cycle in 2026
Tax reforms and tariffs on China expected to have one-off effects on prices, Mexican central bank says
BoJ holds rates as politics and sovereign bonds take spotlight
Decision closes out week in which JGB yields rose to historic highs after PM called snap election
Goolsbee backs Powell and raises tariff concerns
Chicago Fed chief says tampering with independence increases inflation risks
St Louis Fed chief says independence remains critical
Musalem adds that there is little reason for further policy easing in near term
Banxico signals slowdown to rate cuts as inflation falls
Latest figures show non-core metric lies within Mexican central bank’s acceptable band
Venezuela: a crude awakening?
Capture of Maduro opens new chapter for troubled economy and its central bank