Kilian, Lutz; Zhou, Xiaoqing - 2020 - This version: September 9, 2020
explained by a large increase in gasoline prices. However, on average, gasoline price shocks account for only 39% of the … support for the conventional wisdom. Using a new structural vector regression model, however, we demonstrate that gasoline … price shocks may indeed drive one-year household inflation expectations. The model shows that there have been several such …