Bergholt, Drago; Canova, Fabio; Furlanetto, Francesco; … - 2024 - This version: April 8, 2024
What drives the recent inflation surge? To answer this question, one must decompose inflation fluctuations into the contribution of structural shocks. We document how whimsical such a historical shock decomposition can be in standard vector autoregressive (VAR) models. We show that the...