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S6 Ep18: How much inflation did Covid fiscal support cause?

VoxTalks Economics

CHAPTER

The Effect of Fiscal Policy on Inflation

If you're trying to measure the fact of fiscal policy on inflation, you need to control for what's happening in real economy. We selected countries that actually had fiscal support measures because including a country that didn't have any fiscal support would not produce any information for us. So we ended up with mostly advanced economies Australia, Canada, France, Germany, Japan, Spain, UK and US. But we also had Brazil and Russia in our sample because these are countries for which sentiment data are available. And they had some fiscal support measures.

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