Reading the BIS: Bottlenecks & Macro Implications [Ep. 167, Macropiece Theater]

Eurodollar University · Nov 25, 2021 · 26m

The Bank for International Settlements observes that bottlenecks in the supply of commodities, intermediate goods and freight transport have given rise to volatile prices and delivery delays. These disruptions have been particularly severe in upstream industries and have led to large international spillovers through global value chains. On the one hand, the inflationary effect of bottlenecks will likely be limited after relative prices have adjusted. But sustained pressures could emerge if bottlenecks persist long enough to trigger an upward shift in wage growth and inflation expectations. A…