‘Bullwhip effects’ worsening supply problems – BIS bulletin
Direct inflationary impact likely to be limited, but “sustained pressures” are possible, economists say
“Bullwhip effects” are making supply problems more severe, analysis by the Bank for International Settlements finds.
In a bulletin article published on November 11, Daniel Rees and Phurichai Rungcharoenkitkul explain that initial shortages pushed firms to build up buffers, despite “already lean production networks”.
“Anticipation of product shortages and precautionary hoarding at different stages of the supply chain have aggravated initial shortages (the ‘bullwhip effect’), leading to further
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