Bundesbank paper looks at core inflation uncertainty

Increased uncertainty affects the economy in ways similar to a positive demand shock, a working paper published by the Deutsche Bundesbank finds. 

In The macroeconomic effects of inflation uncertainty, Norbert Metiu and Esteban Prieto note that this topic is currently very relevant to policy debates. 

The authors say estimates of inflation volatility, especially measures of the core figure, rose considerably during and after the Covid-19 pandemic. The last time inflation uncertainty rose by a