Global Supply Chain Disruptions: Challenges for Inflation and Monetary Policy in Sub-Saharan Africa
IMF Working Papers, February 24, 2023
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- Global Supply Chain Disruptions: Challenges for Inflation and Monetary Policy in Sub-Saharan Africa
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Bibliographic details
- Authors: Zo Andriantomanga, Marijn A. Bolhuis, Shushanik Hakobyan
- Published: February 24, 2023
- Series: IMF Working Papers
Summary and scope
- Authors: Zo Andriantomanga, Marijn A. Bolhuis, Shushanik Hakobyan
- Publication date: February 24, 2023
- Paper type and series: IMF Working Papers, Working Paper No. 2023/039, Issue: 039
- Pages: 41
- Volume: 2023
- ISBN: 9798400235436
- ISSN: 1018-5941
- Coverage: Panel of 29 sub-Saharan African countries from 2000 to 2022
- Core research question: Implications of global supply chain disruptions for inflation and monetary policy in sub-Saharan Africa
Key empirical findings
- The Covid-19 pandemic caused a large disruption of global supply chains.
- Increases in supply chain pressures have had a sizeable impact on:
- Headline inflation
- Food inflation
- Tradable inflation
- The empirical analysis uses a panel of 29 sub-Saharan African countries covering the period 2000 to 2022.
Policy implications and recommendations
- Central banks can stabilize inflation and output more efficiently by:
- Monitoring global supply chains
- Adjusting the monetary policy stance before disruptions have fully passed through into all inflation components
- The gains from monitoring supply chain disruptions are particularly large for open economies because:
- Open economies tend to experience outsized second-round effects on the prices of non-tradable goods and services
Subject areas and keywords (as provided)
- Subject: Central bank policy rate, Economic theory, Financial services, Food prices, Inflation, Oil prices, Prices, Supply shocks
- Keywords: Central bank policy rate, core inflation, food prices, Global, global supply chains, GSCPI shocks to inflation, Inflation, inflation component, inflation in sub-Saharan Africa, monetary policy, monetary policy in sub-Saharan Africa, monetary policy stance, oil price, Oil prices, shipping costs, sub-Saharan Africa, Supply shocks
IMF Working Papers — Global Supply Chain Disruptions: Challenges for Inflation and Monetary Policy in Sub-Saharan Africa (Zo Andriantomanga, Marijn A. Bolhuis, Shushanik Hakobyan), February 24, 2023
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