Highly relevant! Great to see an updated version of this paper: "Supply Chain Uncertainty, Energy Prices, and Inflation" by Alfonso Merendino and Tommaso Monacelli. "This paper develops a theory of inflation amplification of supply shocks grounded in firms’ uncertainty about their supply chains. We argue that the complementarity between energy price disturbances and supply chain uncertainty is a structural feature of modern production structures built on highly interconnected supply chains, increasingly exposed to disruptions whether for economic or geopolitical reasons. ...Embedding this mechanism in a canonical New Keynesian model, we show that supply chain uncertainty generates an endogenous uncertainty wedge in the Phillips Curve, activated by volatility in transportation conditions. In general equilibrium, it is the volatility of supply shocks - not just their level - that becomes a key determinant of inflation dynamics, amplifying both the impact and persistence of inflation in response to energy shocks. These findings carry important policy implications. When supply chain uncertainty is elevated, transitory energy shocks can mimic persistent inflationary pressures, suggesting that optimal monetary policy should be state-contingent -calibrated to the prevailing degree of volatility in supply conditions." drive.google.com/file/d/1LlH…