THE TRANSFORMATION OF MONETARY POLICY: A LOOK AT THE GLOBAL SUPPLY CHAIN PRESSURE INDEX (GSCPI)

Abstract

The pandemic caused by COVID-19 not only left havoc on public health, but also generated interruptions in the supply chain, turning this scenario into a challenge for the international economy. Logistical interruptions, increases in shipping costs and delays in delivery times were caused by the closure of factories located in Asia, as well as the extension of quarantine times that affected mobility. These explicit circumstances somehow made it possible to carry out measurement exercises aimed at examining supply chains in a global context to identify the inflationary pressure in them as a consequence of the breakdown in the supply of materials in the world.
Given what has been described, the present presentation aims to show how, through the episodes of lack of synchronization between supply and demand produced by the pandemic, the inflation that occurred and that continues to make noise in the market, its nature is via pull. of supply, which is still unknown by central banks maintaining their traditionalist vision of intervening in the money market according to the dynamics of aggregate demand.
Finally, central banks are in a transition to examine inflation no longer based on monetary data but incorporating data on shipping costs, times and movements of goods in order to explain the behavior of local and international prices.