Research

WORKING PAPERS

“Investor Heterogeneity and Large-Scale Asset Purchases” with Johannes Breckenfelder

“Investing in Safety” with Johannes Breckenfelder and Marie Hoerova

PAPERS IN PROGRESS

“Import Prices and Domestic Inflation”

The 2021–2023 inflation surge was characterized by inflation rising in many countries simultaneously due to a mix of, domestic and foreign, supply and demand factors. I investigate the impact of an increase in import prices on domestic inflation. I use monthly bilateral trade data by country-industry for which both the quantity and prices of imported goods are reported at the 4- digits commodity level. I propose a shift-share Bartik-style instrument to estimate the elasticity of domestic inflation to import prices. The quasi-exogenous variation is based on exposure to global import prices of products across countries. Preliminary results show that a 1% increase in import prices increases domestic inflation by 6-10 basis points.