Abstract
We develop a new monthly indicator of supply bottlenecks using newspaper articles. The supply bottlenecks index (SBI) provides a consistent narrative of supply issues related to wars, natural disasters, strikes, and, most recently, the COVID-19 pandemic. Innovations in the SBI have important macroeconomic implications: an increase in the SBI works as a cost push shock, decreasing industrial production and employment and pushing prices up, making monetary policy face important trade-offs.
Authors
- Pablo Burriel
- Ivan Kataryniuk
- Carlos Moreno Perez
- Francesca Viani
JEL codes
- F40
- E23
- E31