Global Inflation and Monetary Policy Responses in the COVID-19 Era: A Systematic Review

Abstract

This article examines how global inflation evolved during the COVID‑19 pandemic and how monetary policy responded to these pressures between last five years. The study addresses the question of what factors drove the surge in inflation and how central banks in advanced and emerging economies reacted during this period of crisis. Using a systematic literature review of several peer‑reviewed studies and institutional reports, the article synthesizes findings on the sources of inflation, policy strategies, and differences across regions. The review shows that inflation during the pandemic was largely triggered by supply disruptions, high commodity prices, and rapid demand recovery, and that responses varied: advanced economies maintained accommodative policies longer, while emerging economies tightened earlier. The discussion highlights how these studies analyze the roles of institutional credibility, communication strategies, and policy coordination in shaping inflation outcomes. The findings emphasize that monetary policy alone is insufficient to manage supply‑driven inflation and that a coordinated policy mix is needed to stabilize economies in future global crises.