Analysis shows geopolitical risk increases energy inflation risk in countries, highlighting potential economic concerns.
This paper addresses the effect of country geopolitical risk on energy inflation by employing a methodology that combines fixed effects panel quantile regressions and local projections. Results show that adverse country-specific geopolitical events are associated with upside risks on energy inflation whereas the analysis provides insufficient evidence for both the median and left tail of the energy inflation distribution.
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Amado et al. (2025) studied this question.
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