Is monetary policy transmitted through markets for intermediate goods? Analyzing US data on corporate linkages, we document that the financial health of downstream and upstream firms plays a key role in monetary policy transmission. Our estimates suggest that contractionary changes in monetary...

This paper examines the impact of stress in the global supply chain on inflation and monetary policy in Mexico, a representative emerging market economy. Using non-linear local projections, the degree of monetary policy tightening required in a high-stress supply chain environment is estimated....