During the pandemic, annual CPI inflation in the US rose sharply to a peak of 9% in June 2022. This column argues that the rise of inflation can be explained with a framework in which inflation depends on three factors: long-term expectations, the tightness of the labour market as measured by the vacancy-to-unemployment ratio, and large changes in relative prices in particular industries, such as energy and autos. Furthermore, it shows that the same framework can explain the retreat in

Tag-uri: Inflatie