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The long-run effects of pandemics on inflation: Will this time be different?
Dennis Bonam1,2, Andra Smădu1,3
1De Nederlandsche Bank, The Netherlands.
Abstract:
We find that past major pandemics have led to a significant decline in trend inflation in Europe that lasts for more than a decade. The effects of the COVID-19 pandemic on trend inflation could, however, be different this time around.
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