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OECD chief economist makes the case for stress testing corporate supply chains

Local lockdowns - like the one in Leicester - could provoke further supply chain disruptions

Companies’ supply chains could be stress tested following the Covid-19 pandemic, similar to tests imposed on banks and insurers after the financial crisis in 2008, the OECD’s chief economist said.

“There’s a case for stress testing value chains for some firms, like what we do for banks and insurers,” said Laurence Boone during a 1 July virtual Treasury Committee evidence session on the economic impact of the coronavirus. “The insurance balance sheet, as you know, is usually as complicated as a supply chain.”

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