Policy Challenges and International Spillovers in Times of High Inflation

The world economy is witnessing an unprecedented surge in inflation, which has led to a globally synchronized tightening of the monetary policy stance across advanced and emerging economies. Against a backdrop of growing fears of global economic fragmentation and a resurgence of geopolitical tensions and trade protectionism, these developments raise the question of whether the nature of international spillovers has changed and what the associated policy challenges are.

They seek both theoretical and empirical contributions related to the international transmission of shocks, with a particular focus on the implications of supply-side shocks, global economic fragmentation and the respective roles of monetary, fiscal and macroprudential policies.