Briefing

Supply Chain Resilience and the Effects of Economic Shocks

Abstract: Supply chains have long been integral to the U.S. economy, allowing firms to capitalize on specialization and efficiency. However, recent developments like the COVID-19 pandemic, global geopolitical tensions and increasing climate risk have revealed their vulnerabilities as well as their abilities to propagate and amplify economic shocks. In response, firms and policymakers are increasingly focusing on strategies to bolster supply chain resilience. This article explores how economic shocks can propagate through the supply chain, the trade-offs associated with resilience investments, and policy responses aimed at strengthening the stability of U.S. supply chains.

Keywords: supply chains; international trade; inflation;

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2025-01

Volume: 25

Issue: 02