The Spillover of Inflation among the G7 Countries

Many global shocks, including the renegotiation of NAFTA, United States–China trade war, Brexit, and COVID-19 pandemic, may have recently influenced inflation spillover in G7 countries. The current literature overlooks influence these important events on This study fulfills this gap investigates nature short, medium, long term. Using monthly data from 1956:6 to 2020:12, finds that Japan States are main transmitters inflation. International trade, purchasing power parity, low-cost technology, Abenomics policy were found be responsible for spillover. We suggest central banks countries collaborate achieve targeted rate.