AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Supply Disruptions and Fiscal Stimulus: Transmission through Global Value Chains
AEA Papers and Proceedings
vol. 114,
May 2024
(pp. 112–17)
Abstract
We study the impact of demand and supply factors on bottlenecks and inflation during the COVID-19 pandemic. Initial policy interventions, from lockdowns to fiscal stimuli, triggered shifts in consumer spending and supply chain disruptions. The reopening of economies normalized consumption patterns, but attributing bottlenecks to specific factors remains challenging due to diverse policy responses. This paper empirically integrates fiscal spending, mobility measures, and supply constraints to analyze interconnected factors influencing bottlenecks and inflation internationally. We find an important role played by fiscal shocks and the international propagation of demand and supply forces in shaping bottlenecks and inflation dynamics.Citation
de Soyres, François, Alexandre Gaillard, Ana Maria Santacreu, and Dylan Moore. 2024. "Supply Disruptions and Fiscal Stimulus: Transmission through Global Value Chains." AEA Papers and Proceedings, 114: 112–17. DOI: 10.1257/pandp.20241099Additional Materials
JEL Classification
- E31 Price Level; Inflation; Deflation
- E32 Business Fluctuations; Cycles
- E62 Fiscal Policy
- F14 Empirical Studies of Trade
- I12 Health Behavior
- L14 Transactional Relationships; Contracts and Reputation; Networks