Authorities should consider stress-testing global supply chains – BoE paper

The interior of a big warehouse

Research from the Bank of England suggests stress-testing global supply chains as a way to prevent the impacts of crises from proliferating across the world.

In their paper, Richard Baldwin and Rebecca Freeman analyse whether shortages in certain goods and services would be “less severe” if supply chains were shorter, more domestic or more diversified.

Baldwin and Freeman note that shortages experienced during the Covid-19 pandemic were “very different” to disturbances in the past, but not

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