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MNI BRIEF: China Supply Chain Shocks Justify Diversity - BOFIT

(MNI) LONDON
(MNI) London

Global supply chain shocks account for around a third of inflation dynamics over a one-year horizon, according to a paper published by the Bank of Finland's Institute for Emerging Economies, with disruptions originating in China having a quantitatively similar effect on production as those from the rest of the world, while supply chain shocks from outside China are an especially important driver for consumer price dynamics.

"In light of rising geopolitical tensions, global supply chain diversification seems warranted to avoid being overly dependent on authoritarian regimes," the authors conclude."

MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
Central Bank NewsPolicy NewsStoryAPACChinaCEEMEABriefGlobalEuropean Central BankRegion
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MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
Central Bank NewsPolicy NewsStoryAPACChinaCEEMEABriefGlobalEuropean Central BankRegion
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