Researchers at the Fed conclude in a new paper that Covid caused a "demand reallocation shock."
Their model finds this shock "is able to explain a large portion—3.5 percentage points—of the increase in U.S. inflation post-pandemic." https://t.co/tggnxc5xe9 pic.twitter.com/2z0YBRVWnF
— Nick Timiraos (@NickTimiraos) February 22, 2023