Inflation and Deflation →

Why Are Prices So High Right Now—and Will They Ever Return to Normal?

And when will sold-out products return to store shelves? The answers aren't so straightforward. Research by Alberto Cavallo probes the complex interplay of product shortages, prices, and inflation. Open for comment; 0 Comments.

Inflation with COVID Consumption Baskets

Examining the impact that changes in expenditure patterns are having on the measurement of consumer price indices (CPI) inflation in 17 countries, this study finds that the cost of living for the average consumer is higher than estimated by the official CPI. This implies that real consumption is falling more quickly over time.

Tariff Passthrough at the Border and at the Store: Evidence from US Trade Policy

Collecting and analyzing microdata on prices and the reaction of importers, retailers, and exporters to US trade policy since 2018, this study finds most of the tariffs’ incidence rests with the US firms.

The 'Amazon Effect' Is Changing Online Price Competition—and the Fed Needs to Pay Attention

Amazon's power in the retail sector puts price pressure on what competitors charge, with implications for how federal regulators govern inflation, says Alberto F. Cavallo. Open for comment; 0 Comments.