Global Supply Chain Disruptions: Challenges for Inflation and Monetary Policy in Sub-Saharan Africa

The Covid-19 pandemic has led to a large disruption of global supply chains. This paper studies the implications of supply chain disruptions for inflation and monetary policy in sub-Saharan Africa. Increases in supply chain pressures have had a sizeable impact on headline, food, and tradable inflati...

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Bibliographic Details
Main Author: Andriantomanga, Zo
Other Authors: Bolhuis, Marijn, Hakobyan, Shushanik
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2023
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Supply and demand 
653 |a Economic & financial crises & disasters 
653 |a Interest rates 
653 |a Energy: Demand and Supply 
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653 |a Oil prices 
653 |a Economic Theory 
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653 |a Interest Rates: Determination, Term Structure, and Effects 
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520 |a The Covid-19 pandemic has led to a large disruption of global supply chains. This paper studies the implications of supply chain disruptions for inflation and monetary policy in sub-Saharan Africa. Increases in supply chain pressures have had a sizeable impact on headline, food, and tradable inflation for a panel of 29 sub-Saharan African countries from 2000 to 2022. Our findings suggest that central banks can stabilize inflation and output more efficiently by monitoring global supply chains and adjusting the monetary policy stance before the disruptions have fully passed through into all inflation components. The gains from monitoring supply chain disruptions are particularly large for open economies which tend to experience outsized second-round effects on the prices of non-tradable goods and services