Macroeconomic effects of carbon-intensive energy price changes: A model comparison

This NGFS Occasional Paper compares a selection of models to assess the macroeconomic effects of both a temporary and a permanent energy price increase.

Its authors find that temporary and permanent price shocks can be inflationary, although this depends on the underlying model assumptions and monetary policy responses. This paper also examines the commonalities shared by these models, as well as cross-country differences.