IDEAS home Printed from https://ideas.repec.org/a/eee/inecon/v161y2026ics0022199626000516.html

Global value chains and inflation dynamics

Author

Listed:
  • Chau, Vu
  • Conesa-Martinez, Marina
  • Kim, Taehoon
  • Spray, John

Abstract

We study the inflationary effects of pandemic lockdown shocks and fiscal and monetary stimulus over 2020-22 using a novel harmonized dataset covering producer prices and input–output linkages for 1254 country–industry pairs across 55 countries. Our identification strategy employs a Bartik shift-share design, where country–industry shares capture the heterogeneous exposure to each shock. The results show that pandemic lockdowns – and the subsequent reopening policies – were the dominant drivers of global inflation during this period. Fiscal and monetary policies played an important role in preventing deflation in the first year of the pandemic, but their effects waned during the recovery years.

Suggested Citation

  • Chau, Vu & Conesa-Martinez, Marina & Kim, Taehoon & Spray, John, 2026. "Global value chains and inflation dynamics," Journal of International Economics, Elsevier, vol. 161(C).
    • Handle: RePEc:eee:inecon:v:161:y:2026:i:c:s0022199626000516
    DOI: 10.1016/j.jinteco.2026.104261
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0022199626000516
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jinteco.2026.104261?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:inecon:v:161:y:2026:i:c:s0022199626000516. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505552 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.