International inflation spillovers: The role of different shocks

Gregor Bäurle, Matthias Gubler, Diego R. Känzig

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


How do international price fluctuations spill over to country-specific inflation? We show that accounting for the drivers of international inflation and their effects on overall economic conditions is crucial to getting a more thorough view of spillover effects. We find substantial heterogeneity in the mag-nitude of spillovers, depending on the shocks driving inflation abroad. While all identified shocks are inflationary, their effects on activity, interest rates, and exchange rates differ. Disaggre-gated price responses suggest that these general equilibrium effects are important. We show this by looking at spillovers to Switzerland using a structural dynamic factor model relating disaggregated prices to key macroeconomic factors.

Original languageEnglish (US)
Pages (from-to)191-230
Number of pages40
JournalInternational Journal of Central Banking
Issue number1
StatePublished - 2021

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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