IMF authors build network model of trade fragility

IMF headquarters in Washington, DC

A group of researchers has built a network model of trade to assess the system's fragility in the face of supply shocks, publishing results in an International Monetary Fund working paper on February 13.

Brian Dew, Magali Pinat and Yevgeniya Korniyenko say their method allows them to identify potential spillover effects from supply shocks coming from importing specific goods from specific countries. They are able to quantify the riskiness of individual goods and produce country-level indicators

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