We estimate a multi-country multi-sector New Keynesian model to quantify the drivers of
domestic inflation during 2020–2023 in several countries, including the United States. The
model matches observed inflation together with sector-level prices and wages. We further
measure the relative importance of different types of shocks on inflation across countries
over time. The key mechanism, the international transmission of demand, supply and energy
shocks through global linkages helps us to match the behavior of the USD/Euro exchange …

We estimate a multi-country multi-sector New Keynesian model to quantify the drivers of
domestic inflation during 2020–2023 in several countries, including the United States. The
model matches observed inflation together with sector-level prices and wages. We further
measure the relative importance of different types of shocks on inflation across countries
over time. The key mechanism, the international transmission of demand, supply and energy
shocks through global linkages helps us to match the behavior of the USD/Euro exchange …