Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
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 costpush shock, decreasing industrial production and employment and pushing prices up, making monetary policy face important trade-offs.