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Uncertainty and inflation: The role of COVID-19 stabilisation policies-Evidence from OECD countries

Author

Listed:
  • Nicholas Apergis

    (University of Piraeus)

  • Emmanuel Apergis

    (University of Huddersfield)

Abstract

This paper makes use of a time-varying parameter VAR (TVP-VAR) with stochastic volatility using OECD data to explore the impact of the uncertainty associated with COVID-19 stabilization shocks on inflation. The findings document that the response of inflation is primarily positive, implying that such uncertainty shocks propagate like aggregate supply shocks with the results remaining robust under alternative uncertainty shocks and inflation metrics.

Suggested Citation

  • Nicholas Apergis & Emmanuel Apergis, 2025. "Uncertainty and inflation: The role of COVID-19 stabilisation policies-Evidence from OECD countries," International Economics and Economic Policy, Springer, vol. 22(1), pages 1-9, February.
    • Handle: RePEc:kap:iecepo:v:22:y:2025:i:1:d:10.1007_s10368-024-00650-8
    DOI: 10.1007/s10368-024-00650-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Uncertainty shocks; Inflation; COVID-19; Stabilization policies; OECD countries;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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